Teen Business?

[KyleScalise]

What is the name of your state (only U.S. law)? Pennsylvania

Hi,

I'm a 15 year old teen with bright ideas, an okay amount of capital to make them happen, and much experience using the web, which is important these days.

I'm wondering a few things regarding businesses and laws in my state and the U.S.

1) What restrictions are imposed on businesses that are not officially registered? For example, I run multiple websites offering services to other people, so what would be the motivation to actually register as a business and put that Inc. or LLC at the end of my footer?

2) How would a teenager even go about registering a business, should one need to? I spoke to someone in my family about this before, and was told that an adult would need to register as the CEO of the business on paper, and I'd just run things unofficially, but I wanted to make sure this was legally accurate.

Thanks for any information you can provide, and I'll gladly any additional information as needed.

Kind regards,
Kyle Scalise

 

[Ohiogal]

What is the name of your state (only U.S. law)? Pennsylvania

Hi,

I'm a 15 year old teen with bright ideas, an okay amount of capital to make them happen, and much experience using the web, which is important these days.

I'm wondering a few things regarding businesses and laws in my state and the U.S.

1) What restrictions are imposed on businesses that are not officially registered? For example, I run multiple websites offering services to other people, so what would be the motivation to actually register as a business and put that Inc. or LLC at the end of my footer?

2) How would a teenager even go about registering a business, should one need to? I spoke to someone in my family about this before, and was told that an adult would need to register as the CEO of the business on paper, and I'd just run things unofficially, but I wanted to make sure this was legally accurate.

Thanks for any information you can provide, and I'll gladly any additional information as needed.

Kind regards,
K

Please remove your real name. That is the first thing.
Second, registering as a business is not required for you to run a business. A corporation or LLC have their own tax issues, protections and various other things ... You could be a sole proprietor and not register anything.

 

[FlyingRon]

You are confusing several issues. An LLC or Corporation isn't "registering a business." It's creating an independent entity for some purpose. You are free to conduct business as a sole proprietor (much as if you were out mowing lawns for money or whatever). If you operate under your own name, and are not conducting certain services with the public there's no "registration" of a business (in PA at least) on it's own. If you sell goods or services you may have to register for sales tax. If you conduct certain business a registration or license might be required. If you operate under a name that is not yours, you have to register the fictitious name you are using so legally it can be mapped to you. Of course if you have employees, there's a whole additional slew of reporting / tax requirements.



Note at 15, you're going to need an adult to do almost any of these things on your behalf, that is true. In fact, to legally act FOR YOU, it needs to be a parent or guardian or someone they appoint (or a court appoints in some circumstances).

There's way more than we can explain in a few forum posts. There are tons of information available to small business startups that answer many of these questions. You might have to get off your ass and computer and wander down tot he library. They frequently have information there (as well as referrals to free classes and other small business resources).

 

[davew128]

Second, registering as a business is not required for you to run a business.

Every municipality I've ever seen requires a business license or permit regardless of business entity form.

 

[quincy]

What is the name of your state (only U.S. law)? Pennsylvania

Hi,

I'm a 15 year old teen with bright ideas, an okay amount of capital to make them happen, and much experience using the web, which is important these days.

I'm wondering a few things regarding businesses and laws in my state and the U.S.

1) What restrictions are imposed on businesses that are not officially registered? For example, I run multiple websites offering services to other people, so what would be the motivation to actually register as a business and put that Inc. or LLC at the end of my footer?

2) How would a teenager even go about registering a business, should one need to? I spoke to someone in my family about this before, and was told that an adult would need to register as the CEO of the business on paper, and I'd just run things unofficially, but I wanted to make sure this was legally accurate.

Thanks for any information you can provide, and I'll gladly any additional information as needed.

Kind regards,
Kyle Scalise

Kyle, you can check out the following links for good information on small businesses and what is required when starting one:

http://www.sba.gov/ (click on "starting and managing" and "local assistance")

http://www.pasbdc.org

Good luck with your web-based business.

 

[Zigner]

Every municipality I've ever seen requires a business license or permit regardless of business entity form.

That doesn't mean that every municipality requires a business license or permit. To show this is true, I picked a city off the top of my head and looked it up. From page 13 of the following: http://econdev.santa-clarita.com/files/2013/04/DB.pdf


step 4: Business liCenses & permits
City of Santa Clarita Licenses & Permits
The City of Santa Clarita does not issue nor require business licenses or
business permits for businesses operating in Santa Clarita.

Los Angeles County Licenses & Permits
A business permit is ONLY required within the City of Santa Clarita if the
business is subject to Los Angeles County health or safety regulations. There
are an estimated 125 business types that require a business license from
the County of Los Angeles. These include but are not limited to: restaurants,
fitness gyms, beauty salons, heavy equipment rental yards, gas stations,
bakeries, etc. A complete list of categories requiring a license is available
at a Los Angeles County Business License Office or online at lacounty.gov.



***This is posted only to show davew128 that he shouldn't base his answers on only his experiences***

 

[davew128]

***This is posted only to show davew128 that he shouldn't base his answers on only his experiences***

It also indicates my comment is 100% correct as every municipality I've even seen requires it. I've never been in Santa Clarita.

 

[FlyingRon]

Well I gave the information as best I could with the limited info. There's no state requirement in Pennsylvania for a business license. You have to make certain filings if you are conducting taxable goods/service sales or you have employees. Some local municipalities have license requirement and some don't. For example, the City of Reading (Berks County) has a Business Privilege License, but it is DISTINCT from your LLC/Corporation/Fictitious Name filing. Similar requirements exist in the other Bouroughs, but if you are outside them, you don't need one (the county itself doesn't have a requirement).

Again your town/bourough/city will usually have this info on their website or would be glad to explain it to you if you go down to city hall (or whatever it's called).

Forming an LLC or Corporation doesn't do any of these registrations. If you form an LLC you need to register the LLC (if required by your local municipality) in addition, if you are sole proprietor, you can get by getting a license in your name.

As pointed out, you will have a hard time doing anything that requires a contract or signature at 15. No you can't just get some random adult to stand for you either.

 

[Zigner]

It also indicates my comment is 100% correct as every municipality I've even seen requires it. I've never been in Santa Clarita.

100% correct and 100% irrelevant

 

[quincy]

Kyle, you would be smart to consult with one of the business professionals in your area connected with the Small Business Administration, this to avoid the problems that many new business owners experience when starting out.

There are always legal issues to consider when running a website business and when offering paid services online. Insurance, for example, may be needed to protect you and your business from a litigious customer and this is something that can often be overlooked.

If you have an adult in your life who knows the ins and outs of running a business, they can perhaps mentor you. Sometimes mentors are available through the high school.

Again, I wish you good luck.

 

[Silverplum]

I miss signatures.

It also indicates my comment is 100% correct as every municipality I've even seen requires it. I've never been in Santa Clarita.

 

[davew128]

I miss signatures.

What would Denny Crane do?