Legal Aspects Analysis of Start-Up Entrepreneurship Using Social Media

Abstract

The purpose aims at investigating legal aspects of startup companies especially in using social media. Sustainability of startup companies depends on compliance with legal aspects. Two startup theories, lean startup and network theory were applied. Using qualitative approach by reviewing relevant literatures, the legal aspects were identified. The study finds that there are three important aspects of startup namely legal structures of business, legal documents and online legal aspects. A startup may use sole proprietary, partnership, and corporation business structure. A startup need agreements, contracts, and policies. Online business legal aspects relate to Law no. 8 of 1999 concerning Consumer Protection, Law no. 11 of 2008 concerning Information and Electronic Transactions, Law no. 28 of 2014 concerning copyright, Law Number 6 of 1983 concerning General Provisions and Tax Procedures. Compliance of the regulations would support sustainability of a startup business