[Help] My Teenagers & Their Own Businesses...

11 years ago

Whatever happens just make sure they aren;t holding up fan signs on Fiverr dressed in a bikini

I would steer them towards clickbank, as they can have money deposited in there own bank account. They will never have to deal with transactions etc.

If they are so creative, they should put there heads together and come up with something that teenage girls would buy on Clickbank. Teenage Girls creating something teenage girls would like seems like it could only end in them being millionaires before they are 20

Bets of luck. Btw im 21 so kind of qualified to answer the question.

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Lewis T

11 years ago

With regard to paying taxes, they could do everything through you or you could assume responsibility of a business account & LLC until they turn 18 and legally hand it over, voluntarily. Just a thought off the top of my head - someone else can probably direct you further as I don't live in the U.S

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Jarrett Banned 11 years ago

help them create a company. You can get an LLC set up for pretty cheap.
Then create a paypal business account setup through that =)

If someone over 18 must be involved.. you can be a managing member of the company with a small stake. and simply operate the account and just have all payments direct deposited into the company account. problem solved
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- hilogogifts 11 years ago
  
  i agree with you , you have to pay attention to age 18s
  
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  ScottRaven 11 years ago
  
  Originally Posted by hilogogifts
  
  i agree with you , you have to pay attention to age 18s
  
  I tell my girls all the time that our world is not the same world i grew up in and had a job at a Grocery Store at age 12.
  
  I do know that I'm over-protective, but i don't see that changing soon. LOL
  
  Thanks
  
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harryhumph

11 years ago

I was 15 when I started marketing online, I basically just used my parents paypal account until I turned 18. All taxes were paid through my parents and I just managed the account.

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ScottRaven

11 years ago

All great ideas! Thanks a bunch! I hadn't thought about an LLC, and that may be a great option.

Any other input and/or ideas out there? I love having a lot of data before making a decision.

Thanks again!

Scott

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sweetcrabhoney18

11 years ago

I worked at Carl's Jr while writing books and selling things I made by hand. Then I worked at Mc. Donald's while building my first company and getting two different degrees. Don't degrade fast food just because it's different and not flashy and amazing. Hard work is hard work.

I would NEVER start an LLC right away. Go with a DBA if anything -- much cheaper and less tax requirements. They also will need a business license.

They can also use kickstarter or similar sites to build something long term and a brand name.

It's important to remember that legal requirements are based on profit made. I would stress more about the idea and business plan before even thinking legal stuff. Get that business plan written then move onto the legal stuff.

Best of luck.

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ScottRaven

11 years ago

Hi sweetcrabhoney18

I would never knock those types of jobs. In fact, I would never be able to do one myself because of all they require to just survive. My wife, Sharlene (the BOSS around here), has held those types of jobs and says people that work those jobs are usually the hardest working people you'll ever come across besides some Blue Collar Physical Labor type jobs...except in the food server industry, you have to smile and pretend to like people. LOL

You are definitely right: Hard Work is Hard Work...but I also want them to not only put in Hard Work, but Smart Work. We homeschool them (was easier than pulling them out of school every time I had to go to another state to see a specialist or had to spend time in the hospital). I've had 9 surgeries over this past 19 months and they were able to stay with my parents and take their computers to do their school work there instead of having to miss classes and then catch up.

Our little town here is 15 minutes from Branson, MO. We're actually in Forsyth, which is the Taney County Seat, and we have the Taney County Justice Center and Jails along with the Sheriff's Department. I'd prefer to not have them work anywhere here, even though we've never really heard of any incidents since we've lived here (5+ years). But...in my mind, there is always that first time. Like I said...I'm over-protective and I will admit it.

You had some great info about DBA's first and getting them going. I appreciate all that you posted. Like I said, I'm looking for every point of view I can get, along with how to track their stuff and us not to have to pay the taxes on their sales.

Thanks so much!

Originally Posted by sweetcrabhoney18

I worked at Carl's Jr while writing books and selling things I made by hand. Then I worked at Mc. Donald's while building my first company and getting two different degrees. Don't degrade fast food just because it's different and not flashy and amazing. Hard work is hard work.

I would NEVER start an LLC right away. Go with a DBA if anything -- much cheaper and less tax requirements. They also will need a business license.

They can also use kickstarter or similar sites to build something long term and a brand name.

It's important to remember that legal requirements are based on profit made. I would stress more about the idea and business plan before even thinking legal stuff. Get that business plan written then move onto the legal stuff.

Best of luck.

Thanks

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ryanbiddulph

11 years ago

Scott congrats on pointing your kids in the right direction! I felt free once I began running my own businesses and making money online. Before, not so much

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JCorp

11 years ago

Originally Posted by ScottRaven

Hi Again Warriors,

I have a question that I was planning on posting only to a marketer or two that I know were teens when starting out and I think one of them even still is under 18...but it seems the Search Feature is not working right. I can't even find Paul Myers in search for crying out loud! LOL

Anyway, both of my daughters are wanting to learn to make money online and we are supportive of their positions because we just can't stand the thought of what they'd have to deal with at a grocery store, convenience store, McDonald's, or what have you (ok, maybe it's just me...but they're MY babies.)

Plus, maybe they'll become super successful online and can support me for awhile. HaHa

My question is this...

How do I handle the Paypal Issue? Can Teenagers have their own Paypal Account for "business" purposes? If they make beyond a certain amount, they'll have to file taxes at a certain age, anyway. I'm worried about setting up another account under our name and then letting them both use profiles from it. It worries me about the possible Tax Implications for US if it is in our names.

Now, my girls are crazy resourceful when it comes to ideas and creativity! My oldest, 15 years old, just spent a couple hours today creating her own line of T-Shirts and Hoodies with TeeSpring and they are WAY more creative than anything we've come up with.

I know that Caleb Spilchen (spelling?) was very young when he started out and I wanted to know how he handled the Paypal Issue. Now that Paypal reports Tax Documents directly to the IRS if over a certain Dollar Amount and/or Number of Transactions.

If anyone has any ideas or answers that can point us the right way, please let me know. I'll be on and off throughout the night, but I'll be checking when I'm on to see if anyone had ideas.

I just had Back Surgery to have a Spinal Cord Stimulator implanted in me for the Chronic Pain Issues that most long term Warriors are familiar with me having, among other health issues. With that said, I'm lucid parts of the day and parts of the night, but I never know when that will be...so please, post anytime you possibly can!

Thanks in advance for any and all help! I almost always get great info pointing me the exact direction I should look.

I can't wait for your input!

Thanks so much,

Scott Raven
Raven Squared

I like that you're supportive of your kids, many parents would kill off the thought of their children working from home on the computer... "get a real job."

But support is the greatest thing you can give to your children...

To answer your questions:

If your kids aren't 18 yet, then sign them up under you or someone that's over 18 years old. For tax purposes, best to consult with an accountant for your specific city/state/situation, but if they're making money over a certain threshold (dependent on your city/state/country) then they're going to have to file taxes.

I was 19 when I started my first business so I didn't have to rely on anyone... but if I was under 18, I would've simply asked my parents or a relative to sign off on any documents; bank accounts, paypal, business paperwork, etc., etc.

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ScottRaven

11 years ago

JCorp,

Thanks for the input. I'm figuring that we're going to have to set up a separate Paypal Account for them under our name and worry about however the tax ends up being.

I've got some great info from everyone, and would appreciate more insight from anyone else. I appreciate that you guys have been supportive of our pushing our girls toward their own business this young. I figure that they've got more energy than both Sharlene and I do combined, so it may as well get them going and earning some spending money for stuff that they want, as well as building a brand for them that they can continue to grow long term by reinvesting into their businesses from part of their profits.

Thanks again!

Originally Posted by JCorp

I like that you're supportive of your kids, many parents would kill off the thought of their children working from home on the computer... "get a real job."

But support is the greatest thing you can give to your children...

To answer your questions:

If your kids aren't 18 yet, then sign them up under you or someone that's over 18 years old. For tax purposes, best to consult with an accountant for your specific city/state/situation, but if they're making money over a certain threshold (dependent on your city/state/country) then they're going to have to file taxes.

I was 19 when I started my first business so I didn't have to rely on anyone... but if I was under 18, I would've simply asked my parents or a relative to sign off on any documents; bank accounts, paypal, business paperwork, etc., etc.

Thanks

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naidyphoon

11 years ago

I can't say for sure how much it costs but when I wanted to do business in the US I needed to create an LLC. Perhaps you could try getting one in Delaware,there's numerous benefits in doing so. Having said that a DBA should suffice for this stage of the game. I'm 19 so I'm happy to see young and budding entrepreneurs joining the scene

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ScottRaven

11 years ago

I love seeing young people getting involved in this industry.

I'm just hoping our girls become so successful that they can take care of us for awhile. (Just Kidding) LOL

Originally Posted by naidyphoon

I can't say for sure how much it costs but when I wanted to do business in the US I needed to create an LLC. Perhaps you could try getting one in Delaware,there's numerous benefits in doing so. Having said that a DBA should suffice for this stage of the game. I'm 19 so I'm happy to see young and budding entrepreneurs joining the scene

Thanks

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saxguru

11 years ago

I started my own ebay business at the age of 15. It was my dads paypal account and he just sent the money to my bank account at the end of each month

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ScottRaven 11 years ago

I like your forum name & Avitar, saxguru! I played the sax for years until my health issues started. Now, I can't get enough Oxygen, much less enough air. I still have my Yamaha Alto, though. I plan to have it completely refurbished and on standby for the day that I no longer struggle for air...that is, if I can remember how to play it.

I'm pretty sure the general concensus is that they'll have to use one of our accounts. I do remember reading something about Paypal Teens. It was something like a Parent Account with Debit Cards for your teens and the parent controlled the amount on the card (something like that).

I'm going to research that and see how it works if they still offer it.

Thanks for your input!

Originally Posted by saxguru

I started my own ebay business at the age of 15. It was my dads paypal account and he just sent the money to my bank account at the end of each month
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Murigirl

Banned 10 years ago

Hello Sir

I am 14 years old and I also homeschool with my brothers and sisters. We are currently in the stage of developing our own coaching program that teaches how to actually make money over the internet. The niche is Internet Marketing. We've been this industry for 5 years. So it's actually amazing to find other people who are kind of in the same situation as us.

Our site is imcnz.com and as I said before, it's still in the development stage. It's an amazing process and journey for me personally. My dad is 52 and he works night shift. He's been our mentor for 10 years as he has been passionate about money and his past of real estate and money making. So yeah.

Thanks

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David Beroff

10 years ago

You've mentioned at least twice your concern about paying taxes. While I (probably) hate taxes just as much as you, the reality is that you (and your kids) won't be able to avoid them. The government does not care about their age; if they earn money, they'll have to pay taxes, (or at least file).

Now, I am not a tax attorney, but the advantage to having your kids file their own taxes is that they'll likely be in a lower tax bracket than you.

While I generally support some of the options mentioned above, e.g., LLC, when they make sense, I'm more on the side of waiting until their income level actually supports such expenses. In the mean time, use your own PayPal account, and simply pay them the proceeds in cash or into their bank account(s).

Again, I'm not an attorney, but this would simply mean that you file a Schedule C showing $X income, with $X expense, net $0, so no tax impact, just an extra page in your taxes. Then that $X flows into your child's Schedule C as income, minus whatever their expenses are, and if they made a profit, then they pay taxes (at their tax rate), plus self-employment taxes on Schedule SE.

I'm guessing there's a similar sequence with your state and local; again, you'll have to check. I'm in Pennsylvania, where there's no minimum threshold, so even if you earn $33, you have to send $1 to the state.

If your kids (or you) want to protest taxes, let them. It may prove to be an interesting experience.

Thanks

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NeedBucksNow

10 years ago

Sounds like they are on the right track and I only wish that I had taken this more seriously when I was younger. This would be a great time for them to start and I would encourage them to look into internet marketing as it is will only keep getting bigger with time. Are they only using teespring right now? I have heard some good things about them but I would also recommend that they start blogging as much as possible. If they keep up with it for a few years, it could probably help them pay for college or even get a new car. It does take some work and time, but I would rather work for myself than anybody else and it all really depends on what they are willing to put into it. If they can start to get a ton of targeted traffic, the sky is the limit

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actus

10 years ago

I made money with quite a few ad networks when I was 15/16 and I never had any problems. I also had multiple paypal accounts back then. I sent the checks to my mothers account and the other networks let me withdraw to my paypal

I feel like when you're in your first year of Internet Marketing you wont be making enough to worry about tax....

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