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TexLaw
TexLaw, Attorney
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Hello, Im going to start an internet based business (affiliate

Resolved Question:

Hello,

I'm going to start an internet based business (affiliate marketing, email marketing and blogs- marketing and selling info digital products) and i need to know what are the necessary legal steps i should take to protect myself? , I'm not a US-citizen and i don't live in USA,i live in Kuwait but my marketing and selling will be targeted to the US audience.

Thank You
Submitted: 1 year ago.
Category: Business Law
Expert:  TexLaw replied 1 year ago.
Hi,

Thanks for your question.

What are you going to sell?

Will you have any physical presence in the US?

Customer: replied 1 year ago.

What are you going to sell?


 


digital information products


 


Will you have any physical presence in the US?


 


No

Expert:  TexLaw replied 1 year ago.
As you are based in the Kuwait, here are following steps that you need to take to protect yourself legally and set up the most advantageous tax situation for your sales:

1) Incorporate as a Kuwaiti corporation (no need to incorporate in the US, and no need to obtain a business visa or anything else like that).

2) Have an attorney draft up a strong "user-agreement" under Kuwaiti law which limits your exposure to liability to users of your website.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am compensated by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Best Regards,
ZDN
Customer: replied 1 year ago.

Thank You for your reply.


 


- I cant incorporate as a Kuwaiti corporation because under Kuwait law, if im presently working at a government or privet sector, then i can incorporate, this business will be experimental at first, and if i see some success i would leave my job and incorporate. what are the alternatives for my situation?


 


- The problem is,i didn't find any Kuwaiti attorney who could draft such agreement, since they don't know anything about internet marketing, and im wondering as an alternative, to use legal forms generator for my "terms of service" , "privacy policy" "refund policy" documents , whats your opinion?

Expert:  TexLaw replied 1 year ago.
The alternatives in your situation would be to incorporate in another country. However, truly, if you are likely only going to sell in the US, then you don't absolutely need to incorporate at this point, as the US users will have a difficult time asserting any personal liability against you (unless they want to come to Kuwait to do it). Thus, you can consider remaining a sole proprietor for the meantime until your revenues increase enough so that you can quit your job and may legally incorporate in Kuwait.

You also will want to have a specific term in your terms and conditions which states that any dispute or claim regarding the services provided must be brought in the courts of Kuwait. I would recommend that your terms and conditions be specifically "checked" off and agreed to before the user is allowed to use the any services provided on the website.

As far as a using forms for the terms of service, this should work fine. If your website starts generating a lot of revenue, you can always go back and hire a US lawyer at that point to draft up stronger terms (if needed).
TexLaw, Attorney
Category: Business Law
Satisfied Customers: 4258
Experience: Internationational Commercial Attorney
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