legal, business-registration, coloradoI’d like to register a company within the state of Colorado. I’m currently 16 years old, and I’m living in Arizona. I have a sister and grandparents which are Colorado residents. I’ve seen about needing someone that’s not a minor to be the ‘manager’ or something like such where they do all the signing for documents. But I had a few questions.
First, can I register a company within Colorado without being a resident? Or could I use my sister/grandparents for such?
Second, would I still be able to have the title of CEO/Founder of the company legally and could I have a signed agreement that upon becoming emancipated, or turning 18 the company would 100% go to me from whomever the holder/manager is?
Third, the company sells food (which includes online ordering). Would I need another license to be able to sell offline and online?
Lastly, would selling products which minors cannot have (Alcohol, Legal drugs, etc.) cause problems as I’m a minor if I’m not handling anything of that sort.
EDIT: Also, I was born in Colorado if that would change anything.
You are correct that you must have an adult as a member partner of your LLC. This person will bear full responsibility for any contract the LLC enters into and for any debt or liability taken on. This responsibility can be significant and you should be prepared to compensate them for this. You will need to get a lawyer to write up your founding documents, but here is a quick (not-a-lawyer) look at your questions.
First, since your adult partner is going to be the one entering into contracts, Colorado is the correct state in which to register the LLC.
Second, You can legally use the title Founder but you will probably have to wait a few years before assuming the title of CEO. You could use it informally, but it must be clear to all members of the LLC and to anyone entering into an contract with the LLC that your adult partner is the only one able to legally bind the LLC. More info at: http://smallbusiness.chron.com/can-minor-own-membership-llc-14667.html
Second and a half, ownership and responsibility can be transferred in a couple different ways (your lawyer can help you pick) but, you will need to disclose the intended change in ownership to all parties of any contract, loan, etc. They may choose to limit their liability based on this information.
Third, You will need to register with the state tax departments in Colorado and Arizona. They will explain reporting requirements for taxing purposes and can point you to any local food safety requirements, if your lawyer hasn’t already provided that.
Lastly, for offline sales, do not personally accept money for or touch any controlled products. Online, your adult partner will legally be responsible for those sales. Make sure they are aware of what they are getting into.
All content is licensed under CC BY-SA 3.0.