Entrepreneurial Stuff

[Wolfman]

First of all let me say, I came across webdesigntalk.net today, and I have to say this is my kind of place, you guys are awesome.

Im the kind of guy who'll stay online for about 16 hours straight, and I seem to come up with a new business idea every day or two. So I decided to put one into action, my first business will be an ebay business, but I want everything to be legal. I've done all my research and found that what I need to do is file for an S-Corporation. My only problem is that, as many of you are as well, I'm still a minor(16), and seem to be coming up with mixed interpretations of whether or not minors can own a corporation. Some say it's impossible, some say they're doing it currently.

What's your take on this?

Im sure this place will be my new constant hangout.

Thanks everybody for any comments/advice

 

[Wolfman]

My apologies for my first post being a question, You guys just seem pretty knowledgeable, and that question has been pestering me for weeks now

 

[allinone]

From what I have heard. You MUST be 18 to incorporate a business. Some people may say that differs, by the state that you live in. But my guess is that it is a National Law. Also, if you incorporate a business, you must also pay taxes. Which is why it is my advice to you, to not incorporate a business until you have begun making some money. 95% of the businesses you see on ebay.com are not registered, mainly because they would be loosing money from taxes instead of gaining money in sales. I know you want everything to be legal. But you must ask yourself. "Do I want to loose money in taxes if my site isn't a hit?" Or "Do I want to try and grow my business for 6 months to a year, and if it is seeing sufficent revenue, register it, collect taxes, and be official?"

I think I may be able to help you, get your site going quickly. And help it make money right off the bat.)
If you would be intrested in this let me know [email protected]
If not, I hope I helped.

Thank You,
Peter J. Foti
CEO of "AllinoneProductions" And its partners

 

[Mike]

In order to sign legal documents you'll need to be of legal age. In your case, you are too young at this point in time. If your idea is do-able you might want to approach your parents.
In addition, there is no need to incorporate for an ebay based business. If you really reach the state where your revenue is significant then I am sure you will find a legally able person to assist you with forming a company. On a personal note, I am "a believer" in LLC's, Limited Liability Companies, this form has some serious advantages and in some states you can register a LLC even as a single person, which makes the need for a contractual agreement within the company, -> shareholder agreement, obsolete.
However, recap is, start first, see where it takes you and consult with parents and eventually business professionals, e.g attorney, CPA, etc. about the best thing to do. You may "know your stuff" but there is no way that you can cover all bases by yourself, at least not knowledge-wise.

Best of luck!

 

[Wolfman]

Thanks you guys. Just about right after I posted, I found my states LLC page, and pretty much decided that's what I need. I sent an email to my state's Secretary of State's office, and hopefully I'll get a reply next week. I fully agree with the wait until I actually get some revenue flowing before I open a company, but my problem is I cant exactly get that revenue flowing until I do open a company. I need a company name to open ebay and paypal accounts. I thank you for your offer allinone, and may take you up on that sometime. Most likely not on this venture, but I certainly have many more that I will need help with.

Thanks,

 

[allinone]

Thanks you guys. Just about right after I posted, I found my states LLC page, and pretty much decided that's what I need. I sent an email to my state's Secretary of State's office, and hopefully I'll get a reply next week. I fully agree with the wait until I actually get some revenue flowing before I open a company, but my problem is I cant exactly get that revenue flowing until I do open a company. I need a company name to open ebay and paypal accounts. I thank you for your offer allinone, and may take you up on that sometime. Most likely not on this venture, but I certainly have many more that I will need help with.

Thanks,

You get an LLC after you have proof of $100,000 in revenue.

 

[Wolfman]

Legally, or is that just what you would suggest?

 

[stscac]

You get an LLC after you have proof of $100,000 in revenue.

i dont believe that true. if so, back up your information (sources, links) and what states (or countries) you are referencing.

 

[Wolfman]

I plan on bringing in about 35k(profit) a year, which isnt much, but still I think it justifies its own legal entity. I really dont want to get audited, especially if I have to do it in my parents name.

 

[stscac]

very understandable. my recommendation is to save up some money (if you do not already have that money) and go talk to a lawyer or someone at your school who has connections with business (may i assume that at the age of 16 that you are still in high school?)

Build your social network. That was the best thing that I ever did for my business. Gets you thinks for free/cheap/cheaper than normal, plus it gets you on the inside. You might not know where to start with this. That's what we're here for

 

[allinone]

i dont believe that true. if so, back up your information (sources, links) and what states (or countries) you are referencing.

That is the way of the world....

 

[Wolfman]

thanks stscac, I dont quite have the money to hire a lawyer. I'm not in school, privately tutored, so much for that option. I can always try my hand a bartering with the lawyer, maybe setting up a network or something. Not quite sure how well that would work out, but here's to hoping.

 

[Wolfman]

I've been told by an accountant that I can own an LLC as a minor, which increases my hope a great deal. Now I just need to find a lawyer to confirm it. after that, I've got everything planned out and ready to go.

 

[Zeeble]

In the UK, you can be any age to start a LTD company, so long as you are responsible (sorry, you have to be 16 in Scotland).

I consider myself to be knowledgable in this are, if you want to chat over MSN Wolf, my MSN is: [email protected] and I willing be willing to give you business advice.

 

[Wolfman]

Thanks Zeeble, Any help I can get I'll gladly accept. I added you to my list on MSN.

 

[Zeeble]

Hi,
please check that, email: bovey0395@hotmail. I havn't received a notice letting me know about taht yet.

 

[Wolfman]

ahh the joys of copy&paste, I added you when I said I did, don't particularly know why the delay until you got the message. Anyway, It was nice meeting you.

 

[RJ]

I've formed an S-Corporation on multiple occasions, but don't remember at any time being asked to confirm if I was over 18 or not. Forming a corporation is fairly easy. You can do it online through any number of companies and they handle all the paperwork involved in getting it setup. I'm not a lawyer nor qualified to offer legal advice, but I don't believe there are any restrictions on a minor owning a corporation. Search Google for "incorporation" and ask any of the companies providing these services.

"Go for it"!

 

[Wolfman]

Yes that's what Im starting to think, just like a week ago I titled my car, and nobody asked how old I was. So I guess in the eyes of the state, they dont really care so long as you're paying your taxes

 

[DJ-Sound]

Why a corporation? I almost formed a corporation but found no benifits wourth the trouble.

I've had just a regualar business liscense in my name since I was 13 years old. They say 18, but at the gov. offfices they could care less...


Good luck!