If I have an internet-only site, with no storefront/locations, is there a possibility that the business i do could be governed in the jurisdiction/place where my server is.

I want to start an internet-only insurance company, with no
storefront/location. Could my business be governed by the laws/regulations
where my server is located and not my customers locations?

Asked on October 25, 2017 under Business Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It is generally governed by the rules, regulations, or laws of where you actually transact business, not where your server is located. The server is the least important element. If you have an office where the server is, then office operations will be governed by that locality's laws (or wherever you have your office, that is the jurisdiction whose laws, etc apply to office operations); but you will have to abide by certain other laws, such as laws pertaining to advertising, to consumer fraud, etc. wherever you sell, since every jurisdiction has power over transactions occuring within its borders and takes steps to, as appropriate, protect ists own citizens.

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