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BH, Attorney
Category: Business Law
Satisfied Customers: 313
Experience:  NY and CA Attorney 8+ Years
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I want to start a new business that will begin offline but

Customer Question

I want to start a new business that will begin offline but is intended to move online once the service and results can be confirmed, processess streamlined, etc. The service will require people who want to be hired and people who seek the service. However,
both providers and clients will have to go through a background check to qualify. If we set up an LLC before the website is live, is it legal to do preliminary advertising (with a disclosure that the site may not work for them) in search of providers and clients.
If so, is it legal to charge a sign-up fee, to both cover the relatively nominal fees for background checks and to also put early adopters on both sides "at the front of the line" so to speak when the site does go live? Our problem is we can't put up a site
offering people the services of another if we don't already have providers willing to be paid if they are hired. Thanks so much!
Submitted: 1 year ago.
Category: Business Law
Expert:  BH replied 1 year ago.

Yes, it is legal to do the things that you mention, however, you will want to put these in a Terms of Use document on the website and require that those that sign up affirmatively agree (by positively checking an "I agree to the Term of Use" [with a link to those term] box). Background checks require a lot of sensitive information so you also need to make sure that you are properly securing that information and ensuring that those providing the information know your privacy policy.

Expert:  BH replied 1 year ago.

Please let me know if you have any further questions. If you are satisfied with my answer, please rate it so that I may be credited for my time.