Can a minor own a online business?

axilant · 10-04-2004, 02:51 PM

Ok im wanting to start a Angel Fire kinda of site, that will provide free/paid website hosting. I have the funding i need, but what the most important thing is, a kid my age (16 going on 17 in 2 months) own a business, that could profit nearly a couple thousand a month? The reason i say this, im not aware of any of the tax laws or anything, i would probally have to talk to someone about this sort of thing wouldnt I? Well any information on this would be just great. I do have a couple trademarks, i had my parents help me purchase. I wouldnt mind going partners in this but i need people i can trust, and not rip me off. I can do any of the php/javascript/jsp/asp or anything like that, my servers will support all that kind of stuff. I do have a server for now, unmetered bandwidth, anything i can fit through a 250mps line, i can have.
????: NamePros.com http://www.namepros.com/business-development/50242-can-a-minor-own-online-business.html

Is there any useful ebooks, or some websites i can look at to read up on this kinda of stuff? I need to get mpore organized on this as well....

Thanks,
Cody Selzer

viciouscircle · 10-04-2004, 07:01 PM

tax wise, anything over $500 you're supposed to report. however there are several ways around this, such as considering each transaction seperately. being under 18, you also are unable to enter into a binding legal agreement. otherwise, you should be safe. i dont know of any ebooks on the subject.

axilant · 10-04-2004, 08:01 PM

ok thanks alot. Im still looking for more information. I dont want to have a rough transition into paying taxes, when i do turn 18. I wonder if anyone has heard of any transition like this one....

Any help on this topic is great.

Thanks,
Cody

The Equivocate · 10-04-2004, 08:41 PM

I'm 17, and so far this year I've made a couple thousand dollars from my sites. Advertisers are required by law to report your earnings if they go over a certain amount - so I will be recieving a W-2 tax form for this company in January, just like I would from my regular part time job.

At least that's what I think...

Kodeking · 10-04-2004, 08:42 PM

I am 16 and make a moderate amount of money each month. My mom worked in Human Resources and said that you have to report your earnings. I've been told that you can't make it a registered buisness until you are 18, so you would be represented as an individual. If you 'partnered' with an adult and registered the buisness, it would probably be in thier name only.

AdoptableDomains · 10-04-2004, 08:43 PM

IN the US, a minor cannot make a legally binding contract. This does not mean a minor cannot own a business, they just can't strictly be held to anything they sign or agree to. To most banks, credit cards, or customers this is a major drawback. Of course a business can be set up as a separate entity where are is not a problem. This could be a corporation or LLC. Otherwise, a parent or legal guardian can sign and do anything contractual in nature. The law does vary somewhat from state to state. This is basic college Business Law 101.
????: NamePros.com http://www.namepros.com/showthread.php?t=50242

Here's a good article to get you started.
http://www.entrepreneur.com/article/...302956,00.html

axilant · 10-05-2004, 02:19 PM

Ok thanks for all the information. I will talk to my parents and see about opening my own business. I have 5,000 to spend on this so im sure i can get a few servers, plus hire some support people. Thanks for all your advice and time.

Cody

Ethan · 10-05-2004, 02:38 PM

But also remember, what the government doesn't know cannot hurt them. They should more openly educate this kinda stuff in schools if they really want more minors to pay taxes.

Martin23 · 10-05-2004, 03:46 PM

If you are under 18 you should not ofer web hosting, If i ahd a problem with your hosting i would ahve no legal leg to stand on.

Wait a few yaers and learn about the bussiness.

Chris · 10-05-2004, 04:39 PM

Hi Cody,

Make sure that you have a nice solid Business Plan that you can reflect back on from time to time that will keep you on the right track. That's a good size amount to start out with so make sure that you don't spend it foolishly as once it's gone, it's gone. Don't try to start out at the top of the mountain, instead start out at the bottom of the foothill and work your way up, otherwise you'll come crashing down and lose everything.
????: NamePros.com http://www.namepros.com/showthread.php?t=50242

It's best to start out with 1 cheaper server or a reseller account and build up a small client base and then expand as your client base expands. No need to start out with 2 or 3 servers as there's no guarantee you'll be successful and then that'd be money down the drain. The key to being successful is patience, determination, motivation, and the burning desire to succeed in your heart, if you've got that then you should do pretty well. Just stick with it when the going gets tough as with anything they'll be obstacles that you have to overcome.

The majority of new businesses fail within the first year because they don't stick with it. They come up with an idea and when they don't like the results they're seeing then they say the heck with it and give up. It can take a couple years to get your feet off the ground, the biggest key is just to follow your dreams and make it a reality.

If you need any help then just send me a pm.

Best of luck!

axilant · 10-05-2004, 05:31 PM

Thanks alot. I was talking to my uncle about a half hour ago. He said kinda the same, so im sure its 100%. You said about a database, well i know if i was able to start now, i have multiple people that will buy hosting from me. I have a good source for dedicated servers, its only 10 miles away from my house, 150mps unmetered bandwidth, 180gigs of space, and im sure when im 18, they will have better stuff, we have been purchasing internet from this company for a good while, so im sure they will work something out for me.

Thanks,
Cody

I will pm you if i ever need anything

EagleWD · 10-23-2004, 02:29 AM

as far as taxes go... I use a rule of thumb... put 35% of all sales into a seperate saving account. When you file your income tax, use the money to pay them.

Keep all reciepts of every penny spent... Organized...
Start good record keeping now... and it will be easier as you grow older and wiser... (or older anyway)

Shawn
----------------------------------
It aint about the Steak... It's about the Sizzle!!

1rrr1 · 10-23-2004, 02:51 AM

i think you are fine

good luck

Sabre · 10-23-2004, 03:30 AM

good luck

the best way to do it is start small and slowly begin to earn the respect of your customers.... theres no point diving straight in and drowning...

Kodeking · 10-23-2004, 04:14 PM

Originally Posted by EagleWD

as far as taxes go... I use a rule of thumb... put 35% of all sales into a seperate saving account. When you file your income tax, use the money to pay them.

And then pay more taxes on the interest you earn!

AdoptableDomains · 10-23-2004, 11:57 PM

Originally Posted by Kodeking

And then pay more taxes on the interest you earn!

Is it better to pay taxes on interest, or interest on taxes?

Jokez Guy · 10-24-2004, 10:55 AM

You can Register Your Business when your Under 18

, I am 17 and i registered my business last year when i was 16! but this is canada, dont know about anywhere else! Yep i do importing and exporting minor stuff like gloves and stuff!

Peter · 10-24-2004, 06:28 PM

Originally Posted by Ethan

But also remember, what the government doesn't know cannot hurt them. They should more openly educate this kinda stuff in schools if they really want more minors to pay taxes.

That is very irresponsible.

If he follows your advice he can look forward to hefty fines and charges of tax evasion.

P10n33R · 10-24-2004, 07:50 PM

Be sure to write a proper buisness plan before doing anything like this. Seriously it will take you a month or less to write a good proper. Write a business plan. Oh yeah and make a good business plan.

10-04-2004, 02:51 PM	THREAD STARTER #1 (permalink)
axilant Account Closed Join Date: May 2004 Location: /etc/passwd Posts: 2,178	Can a minor own a online business? Ok im wanting to start a Angel Fire kinda of site, that will provide free/paid website hosting. I have the funding i need, but what the most important thing is, a kid my age (16 going on 17 in 2 months) own a business, that could profit nearly a couple thousand a month? The reason i say this, im not aware of any of the tax laws or anything, i would probally have to talk to someone about this sort of thing wouldnt I? Well any information on this would be just great. I do have a couple trademarks, i had my parents help me purchase. I wouldnt mind going partners in this but i need people i can trust, and not rip me off. I can do any of the php/javascript/jsp/asp or anything like that, my servers will support all that kind of stuff. I do have a server for now, unmetered bandwidth, anything i can fit through a 250mps line, i can have. ????: NamePros.com http://www.namepros.com/business-development/50242-can-a-minor-own-online-business.html Is there any useful ebooks, or some websites i can look at to read up on this kinda of stuff? I need to get mpore organized on this as well.... Thanks, Cody Selzer

10-04-2004, 07:01 PM	#2 (permalink)
viciouscircle Senior Member Join Date: Mar 2004 Location: Denton, Texas and Springfield, Virginia Posts: 1,780	tax wise, anything over $500 you're supposed to report. however there are several ways around this, such as considering each transaction seperately. being under 18, you also are unable to enter into a binding legal agreement. otherwise, you should be safe. i dont know of any ebooks on the subject. __________________ SimplyDelivered.net - E-mail Marketing made Simple! [ Infintium.net \| KwikSEO.com \| WeeklyComic.com \| Xf3.org ]

10-04-2004, 08:41 PM	#4 (permalink)
The Equivocate Senior Member Join Date: Dec 2003 Location: Chicago Posts: 1,578	I'm 17, and so far this year I've made a couple thousand dollars from my sites. Advertisers are required by law to report your earnings if they go over a certain amount - so I will be recieving a W-2 tax form for this company in January, just like I would from my regular part time job. At least that's what I think... __________________ Fueled By Ramen

10-04-2004, 08:43 PM	#6 (permalink)
AdoptableDomains Senior Member Join Date: Aug 2003 Location: SW Ohio Posts: 4,027	IN the US, a minor cannot make a legally binding contract. This does not mean a minor cannot own a business, they just can't strictly be held to anything they sign or agree to. To most banks, credit cards, or customers this is a major drawback. Of course a business can be set up as a separate entity where are is not a problem. This could be a corporation or LLC. Otherwise, a parent or legal guardian can sign and do anything contractual in nature. The law does vary somewhat from state to state. This is basic college Business Law 101. ????: NamePros.com http://www.namepros.com/showthread.php?t=50242 Here's a good article to get you started. http://www.entrepreneur.com/article/...302956,00.html __________________ AdoptableDomains.com ~~~~~Finding Good Homes for Good Names~~~~~ FuelPrices.mobi - Fish.us - ManhattanNewYork.net - Salesmen.info - SoundSystems.org Dickering.com - JobPlacement.biz - LotteryTickets.ws - Deleted.cc - Names.im - MP3.hn

10-05-2004, 02:38 PM	#8 (permalink)
Ethan Sheriff Of Nothing Join Date: Apr 2004 Location: Florida Posts: 220	But also remember, what the government doesn't know cannot hurt them. They should more openly educate this kinda stuff in schools if they really want more minors to pay taxes. __________________ Lowter.com - Webmaster eZine and Community Interactive eZine, Articles, Blogs, and More Norics.com \| Cascading Design \| Blue Programming

10-04-2004, 08:01 PM	THREAD STARTER #3 (permalink)
axilant Account Closed Join Date: May 2004 Location: /etc/passwd Posts: 2,178	ok thanks alot. Im still looking for more information. I dont want to have a rough transition into paying taxes, when i do turn 18. I wonder if anyone has heard of any transition like this one.... Any help on this topic is great. Thanks, Cody

10-05-2004, 02:19 PM	THREAD STARTER #7 (permalink)
axilant Account Closed Join Date: May 2004 Location: /etc/passwd Posts: 2,178	Ok thanks for all the information. I will talk to my parents and see about opening my own business. I have 5,000 to spend on this so im sure i can get a few servers, plus hire some support people. Thanks for all your advice and time. Cody

10-05-2004, 03:46 PM	#9 (permalink)
Martin23 Account Suspended Join Date: Jul 2004 Location: .co.uk Posts: 105	If you are under 18 you should not ofer web hosting, If i ahd a problem with your hosting i would ahve no legal leg to stand on. Wait a few yaers and learn about the bussiness.

10-05-2004, 04:39 PM	#10 (permalink)
Chris Senior Member Join Date: Aug 2003 Location: United States Posts: 2,317	Hi Cody, Make sure that you have a nice solid Business Plan that you can reflect back on from time to time that will keep you on the right track. That's a good size amount to start out with so make sure that you don't spend it foolishly as once it's gone, it's gone. Don't try to start out at the top of the mountain, instead start out at the bottom of the foothill and work your way up, otherwise you'll come crashing down and lose everything. ????: NamePros.com http://www.namepros.com/showthread.php?t=50242 It's best to start out with 1 cheaper server or a reseller account and build up a small client base and then expand as your client base expands. No need to start out with 2 or 3 servers as there's no guarantee you'll be successful and then that'd be money down the drain. The key to being successful is patience, determination, motivation, and the burning desire to succeed in your heart, if you've got that then you should do pretty well. Just stick with it when the going gets tough as with anything they'll be obstacles that you have to overcome. The majority of new businesses fail within the first year because they don't stick with it. They come up with an idea and when they don't like the results they're seeing then they say the heck with it and give up. It can take a couple years to get your feet off the ground, the biggest key is just to follow your dreams and make it a reality. If you need any help then just send me a pm. Best of luck! __________________ LIMITED TIME OFFER FOR 3 LUCKY NP'RS ONLY! Mobile website (6 pages) for your business! Reduced heavily to $99 (Reg. $397!) for testimonials! PM Me.

10-05-2004, 05:31 PM	THREAD STARTER #11 (permalink)
axilant Account Closed Join Date: May 2004 Location: /etc/passwd Posts: 2,178	Thanks alot. I was talking to my uncle about a half hour ago. He said kinda the same, so im sure its 100%. You said about a database, well i know if i was able to start now, i have multiple people that will buy hosting from me. I have a good source for dedicated servers, its only 10 miles away from my house, 150mps unmetered bandwidth, 180gigs of space, and im sure when im 18, they will have better stuff, we have been purchasing internet from this company for a good while, so im sure they will work something out for me. Thanks, Cody I will pm you if i ever need anything

10-23-2004, 02:29 AM	#12 (permalink)
EagleWD NamePros Member Join Date: Oct 2004 Location: Nashville, TN Posts: 64	as far as taxes go... I use a rule of thumb... put 35% of all sales into a seperate saving account. When you file your income tax, use the money to pay them. Keep all reciepts of every penny spent... Organized... Start good record keeping now... and it will be easier as you grow older and wiser... (or older anyway) Shawn ---------------------------------- It aint about the Steak... It's about the Sizzle!!

10-23-2004, 02:51 AM	#13 (permalink)
1rrr1 NamePros Expert Join Date: Jun 2004 Posts: 6,240	i think you are fine good luck __________________ Drop Catching Services - Click here for more info Especially effective for .co, .in and .co.in domains. I also offer drop lists for these extensions.

10-23-2004, 03:30 AM	#14 (permalink)
Sabre First Time Poster! Join Date: Aug 2004 Location: Chelmsford, UK Posts: 11,311	good luck the best way to do it is start small and slowly begin to earn the respect of your customers.... theres no point diving straight in and drowning... __________________ Backpacker Insurance

10-24-2004, 10:55 AM	#17 (permalink)
Jokez Guy NamePros Regular Join Date: Oct 2004 Location: Toronto, Canada Posts: 755 Follow @ArfanChaudhry	You can Register Your Business when your Under 18 , I am 17 and i registered my business last year when i was 16! but this is canada, dont know about anywhere else! Yep i do importing and exporting minor stuff like gloves and stuff! __________________ How to Make iPhone Applications - Free Casino Games - Toronto SEO

10-24-2004, 07:50 PM	#19 (permalink)
P10n33R Senior Member Join Date: Aug 2004 Location: Ontario, Canada Posts: 1,238	Be sure to write a proper buisness plan before doing anything like this. Seriously it will take you a month or less to write a good proper. Write a business plan. Oh yeah and make a good business plan.

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