I have an idea for a online business, and I am working on starting it up now, and in the future, hopefully in the next year or before, I hope to form an LLC for this business. Since I am a teenager, how would I need to do this. (Note: I live in Ohio.) I know my parents would be willing to help with getting the LLC formed, through whatever they can, but what would need to be done, and what would I be able to do or not do within the company.
Hi, I'm more than happy to hear that you are thinking of forming your own business here's what you have to understand about forming one. 1. Since you are not 18 years old - They require you to be this age when you register a business for tax purposes - your parents will have to legally be the owners of the business. You are counted as a partner of the business or you can be named on the Board of Directors for the business but not the primary owner because of your age. 2. Tax Information - When registering a business you are required to pay the taxes on said business. Since your parents are going to be the primaries on the business, they can open a Paypal account, bank account and an associated IRS account for deductions will be opened when they receive the EIN information. They will also need to be the primary persons filling out the forms for any grants that are applicable for your state or business genre. They / the business is responsible for all taxes accumulated on this business ( yes Paypal does report to the IRS). 3. Transfer - Since your business will be registered with the state of Ohio and the federal government, when you become of age to own the company, you can then take ownership by signing a few documents. Registering an LLC is simple if you go through a site like LegalZoom.com. I hope this helps and if you need more info please let me know. P.S. Do Not Form the business before the January 1st, or you'll be responsible for taxes since the tax year doesn't end until Dec. 31st.
I would look into forming it somewhere like LegalZoom.com. As far as what you can and can't do, since you're not 18 you won't legally be able to do anything in the company that has to do with legal documents etc. Your best option, in my opinion would be to consult an attorney if you have the money to pay for one as they'll be able to answer each specific question that you might have.
where does it say he is under 18? The word teenager extends up to 18/19. while you are waiting to start your company / business venture, make sure you secure the domains you will be using for your business. To delay might mean that when you are ready to start, they might be taken. You might also want to secure/reserve other digital assests such as facebook page, twitter handle to name a few.
Well I am in fact under 18, and as one of you said, I do already have Facebook/Twitter/Domains already claimed for the possible company. I am also considering letting the "company" exist before making it a real LLC, if that is "allowed", then forming an LLC after I get things started up and I know that things are actually going to happen, and not just an idea/dream that may not make it further than just money wasted and ideas attempted.
Are you earning money or providing services yet? There is really no reason to form a legal entity until you are doing one of those things. You will need a legal entity to receive payment, although you can create a sole proprietorship as opposed to an LLC if you like. Here is a good article covering the differences (http://www.legalzoom.com/llc-guide/llc-sole-proprietor-partnership-comparison.html). You have not posted enough information for me to offer much more in the way of advice, although, I would strongly recommend an LLC if you will be providing products/services to other people. We live in very litigious times and the protection offered by an LLC will be helpful in most cases to shield your personal assets and protect you personally from most liability claims. Since you are 18, I think it is bad advice to put the organization in your parents' names. Would get very messy from a tax perspective as LLC's are pass-through entities.
Yeah, I am likely to start up the business and get it up and running in the next few months, and once I start knowing that this business will last some time, I will be having/helping my parents get all the details possibly from a lawyer or other legal adviser to get the company (most likely an LLC) formed.