Why Even Worry About It?

You put a lot of time, money and sweat into your business. After years of effort, you have it fine-tuned and are making a nice living. How willing are you to lose your business?

Consider following hypothetical situation involving two sole proprietors. Our first party, Programmer, creates computer programs for managing websites. The second party is Mark, owner of a site that provides small businesses with websites. Programmer and Mark come to conclusion that they can make big money by opening a joint site. This type of situation occurs every day on Internet. How should they do it?

The best option is to form a corporation or LLC. Each party will own an agreed upon percentage of company. Mark will contribute his marketing ability while Programmer contributes software platforms. The bylaws [administrative rules] of corporation will detail how profits are divided as well as detailing who gets what [domain name, client list] if relationship doesn’t work out. If a corporation or LLC is not formed, each party exposes their individual businesses to liability just as would occur in a general partnership.

Consumer Complaints

According to FTC, here's what online consumers are complaining about most:

Internet Auctions

The Bait: Shop in a "virtual marketplace" that offers a huge selection of products at great deals.

The Switch: After sending their money, consumers say they've received an item that is less valuable than promised, or, worse yet, nothing at all.

Internet Access Services

The Bait: Free money, simply for cashing a check.

The Switch: Consumers say they've been "trapped" into long-term contracts for Internet access or another web service, with big penalties for cancellation or early termination.

Credit Card Fraud

The Bait: Surf Internet and view adult images online for free, just for sharing your credit card number to prove you're over 18.

The Switch: Consumers say that fraudulent promoters have used their credit card numbers to run up charges on their cards.

International Modem Dialing

The Bait: Get free access to adult material and pornography by downloading a "viewer" or "dialer" computer program.

The Switch: Consumers complained about exorbitant long-distance charges on their phone bill. Through program, their modem is disconnected, then reconnected to Internet through an international long-distance number.

Web Cramming

The Bait: Get a free custom-designed website for a 30-day trial period, with no obligation to continue.

The Switch: Consumers say they've been charged on their telephone bills or received a separate invoice, even if they never accepted offer or agreed to continue service after trial period.