I am 14 and live in Arizona. I run a server for a game online and have been running it for a while. Recently, I decided to add in a feature to allow people to pay for certain rights and privileges on it. I am going to put up a website where people can buy these rights, using my parents PayPal account with their permission. However I want to avoid any legal trouble. I want to know how to prevent any way for me to possibly be sued from users that have paid. I also wondered if I need to pay taxes on the income that I gain. Thank you for reading this, and I hope to get some advice soon!
1 Answer from Attorneys
Placing your business into a legally separate entity can potentially shield you personally from liability associated with your business. This can be done through a corporation, a limited liability company, or a limited liability partnership. Determining which entity is appropriate will depend on how you operate your business. Income that you earn from your business will be subject to taxation. How this income is taxed will depend on the type of entity you operate your business from. Meeting with a qualified tax attorney will allow you to determine which type of entity will achieve the best tax results for your business and give you the liability protection you desire.
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