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What legal aspects does a small business have to consider when running a contest?
Have you ever run a contest from your website? Where did you go to ensure the legality of your contest? What must a business owner take into consideration when running a contest from the business or personal website?
It depends on what you are doing. If there is a prize involved like something that you own. Then no problem. However, if you have a cash prize, that may be taxable. More info about the contest would help.
I was thinking of several contests. One would be a contest for parents to create a video of their child reading my children's book or re-telling the story. I think cash might be the greatest incentive, but I could make it some other prize.
In some jurisdictions, running a contest via selling tickets is illegal (as gambling), while for others, you have to give them a way to enter without paying or buying anything.
For some areas, you have to report who the winner was so that those who join know that you didn't just take the money and never give anything away.
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