Starting a Homebased Business as a Teen –

Opinions expressed by Entrepreneur contributors are their own. hera are a few issues to be mindful of if you ‘re a adolescent starting a business :
Forming the business: People under old age 18 can not form legal business entities, and their parents should do so on their behalf. In some states, a child may be able to be a stockholder or serve on the board of directors of the pot. But because this varies by department of state, you and your parents should consult with an lawyer in your state to find out which rules apply there. In certain situations — such as when a child wishes no longer to be supported and legally dependent on his or her parents — a court will declare the minor emancipated, appoint a defender for the child and allow the defender to work individually with the child for business matters. besides, because the option of legal entity ( corporation, LLC, partnership and indeed on ) will affect your parents and not you ( assuming you are a taxable dependent of your parents and not emancipated ), your parents should consult with a certified public accountant.

Contracts: In some states, minors may “ disaffirm ” the contracts they sign, particularly regarding a business. In other words, the other party ca n’t always force you to uphold your end of the contract. frankincense, in most cases, a rear who is an authoritative signer for the clientele should execute contracts .
Torts: Parents are generally creditworthy for the actions of their children. If a child is negligent in performing an natural process, such as by damaging another person or property, the parents can be liable. This is under the legal theory of “ vicarious indebtedness, ” which means that the person in control is liable for the actions of the person he ‘s in load of. This same theory applies to employers and employee acts during employment. frankincense, in running the business, if a child does something negligent, the rear are creditworthy.

Employment: In most states, special laws apply to employing children, so be certain to consult with an lawyer regarding those applicable in your state.

Where you run the business: Where businesses can be located is determined by city and state regulations. by and large, there are restrictions on whether or not you can run a occupation from your base, depending on the type of commercial enterprise, whether or not customers visit you there and other matters. You will need to get a local license to do occupation ; an lawyer can help you with that angstrom well as give you information about what kind of businesses are permitted in your area. The main point of these laws is to be certain that the traffic, noise and other factors created by businesses do not negatively affect the quieten and early characteristics of residential areas. If your parents do run the occupation from your home, they may be able to deduct some of your rent payment, so they should ask the accountant they consult about this .
Note: The information in this column is provided by the author, not All answers are general in nature, not legal advice and not warranted or guaranteed. Readers are cautioned not to rely on this information. Because laws change over time and in different jurisdictions, it is imperative that you consult an attorney in your area regarding legal matters and an accountant regarding tax matters.
Judith A. Silver, Esq., is the CEO and founder of Silver Law Inc., a technology and business law practice, and Coollawyer Inc., a legal publishing company on the Web. Prior to starting her companies, she served as in-house counsel at Adobe Systems and Sabre/ She holds a bachelor’s degree semen laude from Cornell University and her juris doctorate from the University of California, Hastings College of the Law, in San Francisco.

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Category : Finance

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