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Ask HN: What is legally required to run a small service-based web application?

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Ask HN: What is legally required to run a small service-based web application?

#1
I am gearing up for releasing a web application, targeted at a small audience where I'd like to sell monthly/yearly subscriptions. I am wondering what kind of a legal structure do I need to have in place in order to do this properly. Specifically, I want to (1) limit my liability and (2) make sure that customers trust it enough to sign up. And of course, I'd like for it to not cost an exorbitant amount to set up.

Also, I am deciding between PayPal and Google Checkout for the payment processor. I have little experience with integrating either, and while PayPal is more widespread, Google's documentation seems to be clearer. Any recommendations?

Not sure if this matters, but I am doing all of this as a side-project, and have a full-time job.

Thank you.

EDIT: I am in North Carolina, US. There is nothing about this service that's region specific. Ideally, I'd be able to have international sign-ups. So far, I have had as many hits from Europe + Asia as from the US.

Re: Ask HN: What is legally required to run a small service-based web application?

#2
Some important factors.. what country are you in? What country are your subscribers in? Can you incorporate in a 3rd country?

Regarding payments, there are nothing but horror stories regarding Paypal, and Google doesn't sound that much better. Look carefully concerning this..it could kill your business

Re: Ask HN: What is legally required to run a small service-based web application?

#3
post #2

Some important factors.. what country are you in? What country are your subscribers in? Can you incorporate in a 3rd country? Regarding payments, there are nothing but horror stories regarding Paypal, and Google doesn't sound that much better. Look carefully concerning this..it could kill your business

[deleted]

Re: Ask HN: What is legally required to run a small service-based web application?

#4
About the second point you would ask your bank if they offer a payment gateway service, and offer Paypal or Checkout as a second option. When I am going to buy something online I trust more a service which charges me through a recognised bank, it feels safer in case I have a problem.

Re: Ask HN: What is legally required to run a small service-based web application?

#5
post #2

Some important factors.. what country are you in? What country are your subscribers in? Can you incorporate in a 3rd country? Regarding payments, there are nothing but horror stories regarding Paypal, and Google doesn't sound that much better. Look carefully concerning this..it could kill your business

Edited with details. Thank you.

Re: Ask HN: What is legally required to run a small service-based web application?

#7
post #4

About the second point you would ask your bank if they offer a payment gateway service, and offer Paypal or Checkout as a second option. When I am going to buy something online I trust more a service which charges me through a recognised bank, it feels safer in case I have a problem.

My personal finances are with a credit union that most people haven't heard of. Any suggestions of a non-horrible bank? Would using such a service mean that I have to be PCI compliant, or does my application never see the credit card number?

Re: Ask HN: What is legally required to run a small service-based web application?

#9
post #4

About the second point you would ask your bank if they offer a payment gateway service, and offer Paypal or Checkout as a second option. When I am going to buy something online I trust more a service which charges me through a recognised bank, it feels safer in case I have a problem.

My personal finances are with a credit union that most people haven't heard of. Any suggestions of a non-horrible bank? Would using such a service mean that I have to be PCI compliant, or does my application never see the credit card number?

Read up on Recurly, Spreedly, and/or Chargify...

and also read this: http://news.ycombinator.com/item?id=2169870

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