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View Full Version : How to register business as DBA or LLC? (I'm 13 years old)


Vladika Amerika
08-06-2005, 04:11 AM
How would I register my business as either a DBA or an LLC? I am in Michigan. I am thirteen years old. Please do not post comments about whether or not a thirteen year old could run a hosting company or not, as that is not what I am asking. I did find an online registration at the Michigan government website (can't post link [under five posts]). Are there excessive fees invovled? What process did you go through? I'd like to see how easy it is and how much it costs.

Auracletech
08-06-2005, 07:53 AM
Hi Vladika,

I suggest that yout your business registered in the name of your father, mother, or brother or sister (if they are above 18).

That's the best way. If you involve your parents, you'll get lots of help, not only in registering the company, but in getting important advice when you need it.

Trust me, I was at your position some years back. A 15 year old, wanting to establish their name, against everyone who said that under-age people couldn't do business. Yes they can! But you just need some advice to get on the right track. Once you get that, then no one can stop you!

Best of Luck!

MTSpace at WHT
08-06-2005, 08:27 AM
Hi there,

I don't know about the states, but here in the UK (except Scotland where you have to be 16) you can register a business at any age. Heck, you could set up a company selling your old dummies rather than throwing them away at 4 if you wanted to. It does cost money, about £75 here which is about $140 USD. Trademarking here costs about £200 per trademark, so it can get pretty expensive. But since you're already getting into the stages of registering your business, I'm sure you already have your business PLAN done which has set aside money for these things.

Good luck!

Dan L
08-06-2005, 08:30 AM
Register the business in your name and put your mother or father as Vice President.

In most states you are allowed to register an LLC as long as you are over thirteen years old. By signing a parent on, it would allow you to legally use their name when signing up for a payment processor.

If you sign up as an LLC, you have the Limited Liability protection. A DBA offers no protection and probably would not be the best course to take (unless it is under the LLC).

If you register yourself, the only fees will be (well, here's what they are in Connecticut): $60 for the Articles of Organization, $25 for a signed certificate to open a checking account, $250 yearly base tax, and $250 to dissolute. It's relatively easy to fill out all of the forms as long as you have someone who understands the terms to help you (if not, see the last paragraph of this post). There is no tax on web-related work here.

Now, regarding your age, I won't post whether or not you should, but give you the best advice I can: make sure your parents are comfortable with this. Ask them how they would feel if you needed to start putting in eight hours a day, or had to stay up all night to do work. What happens if you want to drop out of school? What if a client calls at two in the morning? Just make sure they're okay with this, or you'll be in a rut.

Lastly, take a look at my thread here (http://www.webhostingtalk.com/showthread.php?s=&threadid=304009). It's about SCORE, a service that's provided in each state. They provide free help for anyone starting or running a business, and are a great help. They also have seminars on starting a business, which help a lot depending on how familiar you are with entities, taxes, and other issues.

Good luck.

Vladika Amerika
08-06-2005, 09:04 AM
I will have to look up the minimum age. How would you recommend LegalZoom? Apprently they will register your company as an LLC and prepare the tax registration forms for $204.00. And that brings up another point -- taxes. How would I go about doing this?

Dan L
08-06-2005, 09:05 AM
You're wasting money if SCORE can help you for free. $60 vs $204.

If you're a legal company the state will automatically mail you tax forms. You fill them out and mail the state a check (so get a checking account).

dollar
08-06-2005, 09:28 AM
Here in Michigan I know for a fact that you can get a DBA from the county courthouse under the age of 18. I know this because I have personally done it (and still recieve SPAM in the mail from it). There is nothing to getting the DBA, just go down to the county courthouse with $10 and the name you would like to use. They will give you a simple form to fill out, you do so and sign it, and give it back to the grumpy lady. She then looks for any other businesses in the area with a similiar name and if there isn't any conflicts she gives you to noterized (sp?) copies of your DBA and tells you to have a nice day.

An LLC would have to be done by your parents (or anybody else over the age of 18 for that matter) as far as I know.

Vladika Amerika
08-06-2005, 09:47 AM
Originally posted by justadollarhostin
Here in Michigan I know for a fact that you can get a DBA from the county courthouse under the age of 18. I know this because I have personally done it (and still recieve SPAM in the mail from it). There is nothing to getting the DBA, just go down to the county courthouse with $10 and the name you would like to use. They will give you a simple form to fill out, you do so and sign it, and give it back to the grumpy lady. She then looks for any other businesses in the area with a similiar name and if there isn't any conflicts she gives you to noterized (sp?) copies of your DBA and tells you to have a nice day.

An LLC would have to be done by your parents (or anybody else over the age of 18 for that matter) as far as I know.

You made my day with that one :stickout: With a DBA, I understand that I will be able to be held liable? How would my parents be able to register my company as an LLC and still make sure my name is on it?

robertk1
08-06-2005, 09:54 AM
I registered my first business in Illinois when I was 13. Amazingly, none of the forms ever asked me to verify my age in any way.

Of course, this was over 30 years ago, and things may have changed.

Don't hesitate to move ahead with it. You will find some people taken back or offering discouraging advice (not on this forum tho), but go for it anyway. My first business brings back fond memories, and looking back it was a great move. At 13, you are doing something that many adults dream about doing but never get around to.

The average entrepreneur owns over 7 unsuccessful businesses before becoming successful. Don't get discouraged, ever, and if your first business turns you super rich, remember your friends here!

Vladika Amerika
08-06-2005, 10:24 AM
Is there any way to register as a DBA on the internet? And how would I file taxes as a DBA?

dollar
08-06-2005, 10:28 AM
Originally posted by Vladika Amerika
You made my day with that one :stickout: With a DBA, I understand that I will be able to be held liable? How would my parents be able to register my company as an LLC and still make sure my name is on it?

A DBA is simply the ability to use your business name instead of your own. You can sign checks, advertise, etc... with your business's name. It does not actually create a legal entity in any way. Since you are a minor you still would not be able to enter into a legal contract on your own, so any contracts used in your business (assuming you are going to try webhosting, your TOS and AUP come to mind first and foremost) would be null and void.

Your parents would register the LLC in their names, but you would "work" for them more or less. I believe (and I am not a lawyer) that there is no age limit for somebody to sit on the board of directors or anything else.

Jay Suds
08-06-2005, 01:54 PM
An LLC or S Corp would be the best way to go, with regards to protecting your parents liablity should an unfortunate situations arise. I actually believe that with an S corp, your parents could be on the board, but you could hold ownership of all the shares of the company -- which is something you may prefer compared to an LLC.

AH-Tina
08-06-2005, 02:43 PM
Go get some real/valid advice from SCORE or an accountant/attorney. Don't get mislead by advice given in an online forum which could come back to haunt you (and your parents) later.

--Tina

Vladika Amerika
08-07-2005, 12:26 AM
And what are they going to say when a 13 year old walks in asking how to start up a business? I don't think that is an option.

I am trying to find out how to register as a DBA online.

coight
08-07-2005, 03:06 AM
Originally posted by Vladika Amerika
[B]And what are they going to say when a 13 year old walks in asking how to start up a business? I don't think that is an option.


Perhaps you should have thought of that before having the bright idea to start any business at age 13 :stickout:

I can't wait till I have a kid, will have him up and running in the hosting world at the age of 5 he will be able to answer support tickets from pre-school :stickout: :emlaugh:

BoiseRC
08-07-2005, 06:31 AM
I just went all through this ad I am a new business. I did everything online and have a DBA and live in Idaho.
I filed for my EIN # online. This is free and instant. They will send you the confirmation by snail mail.
For the DBA I filed with the Idaho Secretary of State and it cost me $25. For my retail permit number ( ST101) was free and obtained that through the Idaho State Tax Commission web site.

Your State might also have a Business Wizard that takes you through what kind of business you want to start and then spits out all the things you need to do to start your own business.

I do need to warn you that in the State of Idaho on all business application you file with the State to obtain all the crap you need there is no mention of web sites, web commerce or anything like that. This all seems to be a large gray area.
The only thing I could find was regarding custom software written for a business. If its custom then you dont have to pay tax on it.

My business is not really web hosting its retail sales and I am still finding it difficult to find out if I was to be a reseller if the customer is in the State of Idaho would I need to charge them Sales Tax.. Is it a product or a service ?

I decided to check out your State and found this link michigan.gov/businessstartup . This should help u out.

Dan L
08-07-2005, 10:02 AM
My last comment in this thread..

BoiseRC: Is there anything under Electronic Storage and Retrieval of Data?

Vladika: SCORE is here to help people.. 99% of the time they won't mind your age as long as you're over thirteen. Just make sure dress well (shirt/tie), and know what you're talking about. You can also have a parent go in with you.

BoiseRC
08-07-2005, 06:36 PM
Not that I could find. I should also mention that I have not brought up the sales tax issue to my accountant on reselling nor have I called the State Tax commission yet. If I do enter the reseller market which I am leaning towards my market is for small hobby clubs who are generally non profit and dont have a whole lot of extra cash. This would be more of a service and I would try and just cover my costs.

Amish_Geek
08-08-2005, 12:50 AM
Before you register yourself as anything, make sure you put together a solid business plan. You don't want to put forth the money to start a business, and then throw it out the window because your business plan wasn't good, or non-existant.

Put together a rock-solid business plan, research everything so you will make sure (before you start) that you will be profitable. Have your parents go over it with you.

Once you have your business plan, then you will know exactly what to do, since in it, you will have the type of business you are going to be figured out. As well as where you are going to get your servers, what you are going to do for support, etc. You will also know exactly how much money you will need to start your business, and have a good idea on when you will start making profits.

dollar
08-08-2005, 12:57 AM
amish_geek makes one of the very most important notes that anybody could give you. My first go at a business was by the seat of my pants. Luckily I was cleaver enough to come across WHT not too long after and find a post about business plans. I closed off all doors (no customers) and sat down and wrote up a solid business plan. It took around a month for me to actually get it tweaked to perfection in my eyes. I have followed it 80% of the way and made changes as I went when needed, but it is really a guiding light as to "what should I do?".