united-states, legal, business-registration, united-kingdomAssuming I have the resources, either via savings, income, funding, etc. – and I’m still legally a minor within the UK (or the US), how do I legally start a business. To be more clear, what factors as a minor would I need to address and plan for that an adult would not?
Mostly legal issues, with liability and taxes. Those are two of the key areas you should research that will have the biggest impact. The exact law can vary from country to country and state to state, though there are a lot of similarities.
Minors would not be legally liable in a contract. So no-one in their right mind would enter into a contract where only they are liable and the other party (the minor) is not.
Normally a legal guardian acts on behalf of the minor in all legal situations. This means the guardian (e.g. your parents) could be liable for any debts you incur in running the business.
When forming a business an adult considers whether the business is the type that is likely to incur debts when they choose whether to incorporate a Limited Liability Company (LLC) that will offer them some protection or operate as a self-employed person or “sole traider”. e.g. are they trying to form the next Facebook, baby sitting, teaching English etc. What is the financial and legal risk involved.
The law in the region you live then defines what your responsibilities would be in the type of business you form and what your guardians responsibilities would be. e.g. whether you could be a director etc.
In the USA it seems the factor determining whether you need to file taxes is income based rather than age based: http://www.forbes.com/2011/01/25/when-file-first-tax-return-dependents-personal-finance-first-1040.html
For more information a basic google gives these results: http://www.allbusiness.com/company-activities-management/company-structures/14690020-1.html http://smallbusiness.chron.com/can-minor-own-membership-llc-14667.html http://www.incorporationservices.co.uk/faqs.shtml http://www.companylawclub.co.uk/topics/types_of_companies.shtml#Unltd
After doing some research I would recommend consulting a lawyer expert in the field of business in your area and obviously talking to your parents.
All content is licensed under CC BY-SA 3.0.