laovnai: Being a minor and legally accepting payments online?

Newbie

Join Date: May 2010

Posts: 10

I'm under 18, but I'm ready to start an online business - specifically a company that specializes in getting other young internet users their own custom websites.

I have the funds required to start such a business, but I'm worried about legally accepting payments online. My parents would be willing to sign off on anything, but not willing to use their own accounts for anything (eg. making their PayPal into a business account with their name on it) - don't ask me why, they just aren't willing to do that.

I already have a PayPal Student account, but from what I've read in their TOS and from other people online is that I can't operate a business with that account - that I run a high risk of being limited.

Does anyone have suggestions from payment processors that allow minors to take payments as a business? Thanks in advance

Newbie

Join Date: Sep 2012

Posts: 5

You might just have to wait until you're 18

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Join Date: Dec 2007

Location: Indianapolis, Indiana USA

Posts: 13,906

You'll need to have a parent or legal guardian obtain the gateway accounts. The only way around this that I am aware of is to be emancipated, but you'd want to talk to an attorney and, honestly, I wouldn't recommend that route.

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Premium Member

Join Date: Aug 2012

Location: localhost

Posts: 464

Since you are not 18 and assuming you are from USA , you can not legally sign any contract nor own any business. Thus you can not accept payment online ( and offline in various situation).
I would suggest you to hold onto your fund and wait till you are legally mature

--Roel.

Corporate Member

Join Date: Feb 2012

Location: Memphis, TN

Posts: 1,872

The way to do this is to have a legal entity.

Then you provide your business details, EIN etc. Certain areas allow states to be registered at lower age levels so just research.

Just find a place to register with no age req. =)

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Premium Member

Join Date: May 2011

Location: New Zealand

Posts: 588

From what I hear you can do is to get your parents to register your business and you be the only employee of that until you're 18 when you'll then be legally allowed to "take over" the business.

Newbie

Join Date: May 2010

Posts: 10

Hm, perhaps I phrased my OP wrong. I don't really want to register an official business, but I want to be able to accept maybe 50 transactions a month, and then be able to use that money.

Is there a way I could do this by myself?

Premium Member

Join Date: May 2011

Location: New Zealand

Posts: 588

Quote:

Hm, perhaps I phrased my OP wrong. I don't really want to register an official business, but I want to be able to accept maybe 50 transactions a month, and then be able to use that money.

Is there a way I could do this by myself?

I would honestly recommend that you do register a business. Especially if you're selling something.

Would your parents not be happy about being the "account holder" for the PayPal account where from their it can be linked to your bank, card and what not?

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Corporate Member

Join Date: Feb 2012

Location: Memphis, TN

Posts: 1,872

Quote:

Hm, perhaps I phrased my OP wrong. I don't really want to register an official business, but I want to be able to accept maybe 50 transactions a month, and then be able to use that money.

Is there a way I could do this by myself?

Considering you would have to pay taxes etc. You should really know what you are doing. You could also be putting your parents in a liability situation.
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Web Hosting Evangelist

Join Date: Apr 2009

Posts: 521

Our 16 year old twin daughters and our 13 year old daughter own an internet radio station that's been in operation since 2004, previously owned by their older sisters that are now married.

They have a bank account with us as the co signers on the account. They also have a Paypal account that's in our names dba as the name of their radio station.They have a membership for their radio station based on membership donation.

Their mom and I control the finances of their business. For them to write a check one of us have to co sign the check. We've had no issues with them and with the profits they're making all of that is going into their college funds as a tax free investment.

The way we're handling things is teaching them they must take care of their money, run their business legally, cannot waste their money, accounting, banking and straight up business management.

If you're under the legal age to own a business then I would suggest you get some adult help and learn some smart business practices from them, or you may end up being an also ran and hiding from your clients.

Good luck on your business venture.