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

 

[Zeeble]

If you operate as a limited company, the benefits are obvious. The company has a seperate identity to you, plus you have limited liability.

 

[Wolfman]

Exactly What Zeeble said. If you ever get into legal trouble you certainly dont want you to be the "entity" they're suing, plus it just seems more professional, and may be likely to bring in more customers

 

[The Equivocate]

The reason there's the whole "18" thing is because legally, any contract that you enter into as a minor is not a legal contract, it is void. So if you sign a contract for a service or other business deal, being under 18 you might be able to get away with not holding up your end of the bargain, so not a lot of people will want to do business with you.

 

[Zeeble]

As far as I know, its all legal. Its just harder to prosecute a minor.

 

[stscac]

i still don't know the whereabouts to the business but in the US, you can incorporate in just about any state, regardless of where your business is. Delaware is popular because of the lowered incorporation fees. I believe Montana is as well.

As for business with minors, it would not be null and void. At least in New Hampshire, anyone with a product or service can sell that service at any time without going to the state and registering a business, as long as they claim their incomes in their taxes.

I would like to know the state and name of your company if that isnt a problem to put out in the open. Make sure before you incorporate you are not getting too close to anyones "Intellectual Property", visit http://www.uspto.gov and do a search for your "proposed" business name.

Let me know

-Steve

 

[calian]

You might check out When should you incorporate? for some more general information about if you need a seperate entity to get your business started. For most businesses, I would agree with allinone that you should have revenue over $100,000 before really worrying about it.

 

[Wolfman]

Hey Thanks Stscac,

I was pretty sure this was a dead topic, so I hadnt been checking it. Just as soon as I get the LLC registration in my hands (dont want anybody taking my excellent idea, as you guys can understand) I'll release the company info. It would be wonderful of you to help get my name out in the open, and thanks for the offer.

and to you Calian: I believe that is some terrible advice, 100 thousand dollars is a lot of money. Even if you had the balls to try and hide it from the IRS, they'd catch you... eventually, and you'd be in pretty deep ****.

I plan on running my company entirely by the books.

 

[Zeeble]

You might check out When should you incorporate? for some more general information about if you need a seperate entity to get your business started. For most businesses, I would agree with allinone that you should have revenue over $100,000 before really worrying about it.

I think that you are wrong.
It is not determined by your revenues, but rather more by what the business is.

 

[calian]

Wolfman, I'm not in any way suggesting that you hide any earnings from the IRS. What I'm talking about is running your business as a sole proprietership. This is the simplest form of business organization. If your city requires it you file a DBA (doing business as) form with them and possibly get a business license from your state depending on your line of business and location. Then you keep track of your profits and revenues. When revenue exceeds expenses, that is your profit that you can claim on your taxes. The easiest way to do this is to fill it in on the line of the 1040 that asks for all other income that is not from your job, investments, etc. As your business grows and becomes more complicated, you will need more powerful accounting and tax methods, but when you are starting up, there are much more important things than starting a corp or LLC.

 

[Wolfman]

The only problem with this is, in the eyes of the law I am not a legal "entity" therefore I can not enter binding contracts. Therefore in order to do business a seperate entity must do my workings for me. The only way I've found to do so is by either regsitering a Corporation, or a Limited Liability Company. A LLC is basically a corporation, without all the board guidelines and laws, it's also taxed much like a Sole Proprietorship. I have chosen to submit my "Article of Organization" to form a LLC. This is the only option I have found, if you know of an easier way, please let me know.

 

[calian]

The only problem with this is, in the eyes of the law I am not a legal "entity" therefore I can not enter binding contracts.

Gotcha. Still, it seems like if you are going to be super technical about it, you are still going to have to get some one who is 18 to sign things for your LLC for them to be legally binding? Perhaps you should fly under the radar until your company is big enough to support you then go to court and become an emancipated youth with full legal rights and responsibilities. :lol:

Are your parents not willing to support you in your ventures or do you just not want to involve them? Congratulations on what you've achieved so far and good luck on the future.

 

[Wolfman]

I just dont really want to involve them (parents that it), Dont want them to be responsible if I screw up. and so long as I sign the checks "XXXXXXXXXX"(my business name) The Liability will be on the company.