How to limit your online liability

Legal risks can be magnified when a business creates its own Web site. That is because Internet law is still in its infancy. Some strategies for reducing losses for online businesses are presented, including: 1. Create a corporation or limited liability company. 2. Set up a separate legal entity for the online business. 3. Carry adequate insurance. 4. Avoid getting sued in another state or different country. 5. Use contracts to limit liability. Any one of these strategies can save a business from financial ruin. Combining two or more of them erects a strong legal shield against the perils of doing business online.