I'm 16 and want to start a biz with two others (whom are 16 and 18 years old). What would be the best form of ownership for us?

[CreativeGenius]

Hi, I'm 16 and want to start a biz with two others (whom are 16 and 18 years old). We want to start a company that spans across many different industries (real estate, fashion, music, social networking, etc..) Our first thought (and currently our last resort) was to have the 18 year old set up a sole proprietorship in his name. Even though we fully trust each other, we didn't want him to be 100% liable for all 3 our actions, among other things. We've also concidered a LLC, but would that work? What do you all think would be the best form of ownership for us? Thanks in advance.

[pboychuk]

Yes, an LLC would work, I have an LLC with two owners, or you could form a partnership which is not a legal entity, and basically is structured as a sole proprietorship with mult. owners, with full liability. However, I would take a step back and look at your business plan as a whole. having three people at that age just sounds like a disaster to me, you would probably need an accountant, Honestly, I just dont like the idea of any type of partnership unless it is with someone who i highly trust and is not greedy. So its hard for me to give unbiased advice.

[JohnnyBudZ]

Yes, an LLC would work, I have an LLC with two owners, or you could form a partnership which is not a legal entity, and basically is structured as a sole proprietorship with mult. owners, with full liability. However, I would take a step back and look at your business plan as a whole. having three people at that age just sounds like a disaster to me, you would probably need an accountant, Honestly, I just dont like the idea of any type of partnership unless it is with someone who i highly trust and is not greedy. So its hard for me to give unbiased advice.

Chuk, Can a minor have an LLC filed in their name?

[pboychuk]

Chuk, Can a minor have an LLC filed in their name?

Yes, I don't see why not.

[JohnnyBudZ]

I was under the impression that minors could not have business licenses?

[pboychuk]

Hmm I had an Sole proprietorship when I was 15/16.