1. Choose a business structure
- US: sole proprietorship, partnership, limited liability company (LLC) or corporation, formed under state law. Check any state and local licences, and a seller’s permit if you collect sales tax.
- UK: sole trader (register with HMRC for Self Assessment) or limited company (register with Companies House). A limited company separates your personal assets from business debts but has more filing duties.
- EU: each country has its own forms, such as the GmbH in Germany or the SARL in France. Your Europe explains the options country by country.
Check your business name isn’t already used as a trademark in your market before you invest in branding.
2. Put the right legal pages on your website
Most online businesses need terms of sale, a privacy notice and a cookie notice with consent where required. UK and EU sellers must also show their business name, geographic address, email address and, for companies, the registration number. See terms, privacy and cookies.
3. Handle personal data lawfully
- UK and EU: the GDPR and UK GDPR apply to almost any business handling personal data. You need a lawful basis, must be transparent, keep data secure, respect people’s rights and report serious breaches. Most UK organisations must also pay the ICO’s data protection fee.
- US: there’s no single federal privacy law. A growing number of states, led by California, have comprehensive privacy laws that apply above certain size thresholds. COPPA applies if you collect data from children under 13.
4. Sales tax and VAT
- US: since the Supreme Court’s 2018 South Dakota v. Wayfair decision, states can require out-of-state sellers to collect sales tax once they pass an “economic nexus” threshold, which varies by state. Marketplaces usually collect tax for sales made through them.
- UK: you must register for VAT once your taxable turnover passes £90,000 (the threshold since 1 April 2024). Special rules apply to goods imported in consignments worth £135 or less.
- EU: once your cross-border sales to consumers in other EU countries exceed €10,000 a year in total, you charge the VAT of the customer’s country, and can report it through the One-Stop Shop (OSS) instead of registering in each country. The Import One-Stop Shop (IOSS) covers imported goods worth up to €150.
Tax rules are detailed and change often, so take advice from an accountant or your tax authority.
5. Follow consumer law
- Give clear pre-contract information and honour cancellation rights and faulty goods rights.
- In the EU, provide the online withdrawal button required since June 2026.
- Show total prices upfront, including unavoidable fees. Drip pricing is banned in the UK under the DMCC Act.
- Don’t use fake reviews, fake urgency or other misleading practices.
- EU: the European Accessibility Act applies to many e-commerce services from 28 June 2025 (micro-enterprises providing services are exempt). In the US, website accessibility claims are often brought under the Americans with Disabilities Act.
6. Marketing emails and messages
- UK and EU: marketing emails and texts to individuals generally need prior consent, with a “soft opt-in” exception in the UK for existing customers who were given a chance to opt out. Non-essential cookies and tracking need consent.
- US: the CAN-SPAM Act requires accurate headers and subject lines, a postal address and a working opt-out honoured within 10 business days. Texts and calls are tightly restricted by the Telephone Consumer Protection Act.
7. Protect your brand and contracts
- Register your trademark and secure matching domain names and social handles.
- Make sure contracts with freelancers and agencies assign copyright in logos, photos, code and copy to your business.
- Read supplier, platform and payment provider terms, especially on reserves, chargebacks and account suspension.
General information, not legal advice. Rules vary by country, state and situation, and they change. Check the official sources below, and speak to a qualified lawyer or accountant before making decisions for your business.
Last updated: 14 October 2026
