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What are the legal requirements for conducting business in multiple jurisdictions?

Conducting business in multiple jurisdictions requires compliance with a range of federal, state and local laws. 

  • Based on U.S. law, you must register your business in each state where you are going to operate so you know that you are complying with federal and state tax laws. Also, it is necessary to obtain licenses and permits and adhere to local advertising and employment laws. You will also need to ensure compliance with state specific consumer protection (for example; specific types of insurance like workers compensation or unemployment insurance), data privacy (like Gramm-Leach-Bliley Act), and industry regulations and may need to qualify your business in other states or countries based on your data retention methods. 
  • Ongoing legal requirements include maintaining proper contracts (because every state has its own rules regarding contracts and statute of limitations, including the choice of law clause which stipulates which jurisdiction’s law will govern in case parties disputes arise). 
  • It is also important to highlight that all businesses need to be aware of intellectual property rules (trademarks need to be registered with the U.S patent and trademark office USPTO and Copyright Office respectively to protect them nationwide.)
  • Finally, staying updated on changes to federal and state tax obligations is crucial to determine what business activities are considered “taxable events”, which are actually more unclear as the business supply chain and operational complexity are unraveled. 

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