As a teenager, you may be wondering if it's even legal to start a business before you turn 18. The answer is yes!
Is it Legal?
In most states, there are no age restrictions for starting a business. However, there may be some legal considerations you need to keep in mind.
Before starting your business, make sure to check the laws and regulations in your state to ensure that you are in compliance. You may need to get a permit or license to operate your business, depending on the type of business you plan to start.
Getting a Parent to Co-Own Your Business
If you're under 18, you may not be able to sign legal documents or enter into contracts on your own. One way to get around this is to have a parent or guardian co-own your business with you.
If you decide to have a parent co-own your business, make sure to clearly define each person's roles and responsibilities in the business. It's also important to have a written agreement in place that outlines how profits and losses will be shared.
Tips on Legal Formation
When starting a business, it's important to choose the right legal structure. As a teenager, you may want to consider forming a sole proprietorship, which is the simplest and most flexible type of business structure.
Tip: Before choosing a legal structure, it's important to consider factors such as liability, taxes, and the potential for future growth. You may want to consult with a lawyer or accountant to help you make the right decision.
As a business owner, you will be responsible for paying taxes on your business income. Depending on the type of business you have, you may need to register for a tax identification number and file taxes on a quarterly or annual basis.
Tip: Keep detailed records of all your business income and expenses, and make sure to save receipts and invoices. This will make it easier to file your taxes and ensure that you are taking advantage of all available deductions.
If you're too lazy to read all of this, here is a summary.
Starting a business as a teenager is legal, but there are some legal considerations you need to keep in mind. You may want to consider having a parent co-own your business, choosing the right legal structure, and keeping detailed records for tax purposes.
Now, ff you're interested in starting a business as a teenager, you may want to look into the Young Entrepreneurs Program. This program provides resources and support for young people who are interested in entrepreneurship.
Starting a YouTube business can also be a great way for teenagers to make money and gain valuable business experience. To get started, you'll need to create high-quality content, build a following, and monetize your channel.
If you're interested in entrepreneurship, you may want to consider attending one of the top entrepreneurship colleges in the US. Some of the top schools include Babson College, MIT, and Stanford University. These schools offer a variety of programs and resources for aspiring entrepreneurs.