I have a website that will allow users to post for services they offer and connect them with people who need their services. I do not want to charge anything for these services. However users are allowed to transact if they want to.
Do I need to be legally protected for setting up such a website? And does that mean, I need to setup a company too?
Thanks for the help.
2 Answers from Attorneys
With every business comes liability and when operating such sites it can be interpreted as being a communications facilitator online - even if you're intentions are great and don't charge fees. I would recommend protecting yourself from ANY potential liability your business and web portal may develop. If you're interested in discussing some potential liabilities and solutions, feel free to contact me to discuss those. (619) 400-4942
I think that the role you describe is fairly passive and also, apparently at least, not-for-profit and not intended to produce income for yourself. Therefore, I'd say your exposure to lawsuits or claims and liabilities of other kinds is relatively low. However, it sure isn't zero! The best course of action is probably to have a discussion with your insurance agent, or to go find yourself an agent who handles business liability insurance. Make sure any insurance you own (or acquire) covers all the potential risks.