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Updated Aug 20, 2024

You Do What?! 7 Businesses You Didn’t Know Were Legal

Some businesses that might seem dicey or unethical are fully above board. Here are seven examples.

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Written By: Jeanette MulveySenior Writer
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This guide was reviewed by a Business News Daily editor to ensure it provides comprehensive and accurate information to aid your buying decision.
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When you think of a job or business, maybe you imagine an office setting full of intensely focused employees completing common, everyday tasks. Many people grow up with this benign image of work, but such traditional setups exclude other jobs and enterprises that, while unconventional, can still bring fulfillment and financial stability. 

Unusual jobs in unfamiliar or dicey industries often seem dubious or unethical, so you may be surprised to find out they’re perfectly legal. You may even be curious about heading down a nontraditional entrepreneurial path yourself. The keys to success include following the law and getting creative with your services and marketing as the surprising businesses highlighted in this article demonstrate.

What to consider when starting a business in a highly regulated industry

Many of the businesses mentioned above, while legal, operate within highly regulated environments. These industries face stringent compliance regulations to ensure safety, legality and ethical operations. Navigating these regulations can be challenging, but they are crucial for success and sustainability. Before you start a business in a highly regulated industry, make sure you’ve considered the following.

Regulatory requirements

Each highly regulated industry has specific legal frameworks and compliance requirements. For example, brothels in Nevada must adhere to strict local laws, including health and safety regulations, while medical marijuana businesses must navigate a complex landscape of state and federal laws. Consult a legal advisor who specializes in your chosen sector for guidance.

Licensing and permits

Securing the appropriate job licenses and business permits is essential. This might involve obtaining business licenses, health permits or special industry-specific certifications. Failure to acquire the necessary licenses could result in hefty fines or business closure.

Advertising restrictions

As seen with Nevada’s legal brothels and Ashley Madison, online advertising in highly regulated industries often comes with significant restrictions. Business owners must find creative and legal ways to market their services without violating advertising laws. If you don’t want to deal with these hurdles, rethink your business idea.

Privacy and data protection

Businesses like Ashley Madison, which handles sensitive personal information, must implement robust data protection measures to prevent breaches and protect consumer privacy. Compliance with data protection regulations, such as General Data Protection Regulation (GDPR) or the California Consumer Privacy Act, is critical. [Learn how the GDPR has affected data privacy and impacted businesses.]

Tax compliance

Understanding and adhering to tax laws specific to your industry is vital. For example, the cannabis industry faces unique tax liabilities and challenges due to federal restrictions on deductions. Consult with tax professionals who specialize in the industry for help navigating these complexities and be sure to stay on top of tax season preparation.

Key TakeawayKey takeaway
Compliance with regulations is nonnegotiable in highly regulated industries. If you don't adhere to legal requirements, obtain any necessary licenses and implement strong data protection measures, you might find yourself in trouble with the law.
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Written By: Jeanette MulveySenior Writer
Jeanette has been writing about business for more than 20 years. She has written about every kind of entrepreneur from hardware store owners to fashion designers. Previously she was a manager of internal communications for Home Depot. Her journalism career began in local newspapers. She has a degree in American Studies from Rutgers University.
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