Legal Question in Business Law in Michigan

Starting a Company Under 18

I am 14 and have been studying and working in the Information Technology industry for 8 years through my fathers company. I have found a business ventuer that has interested me. I am wanting to offer Wireless Internet Service and VoIP Service. My question is what are the legal conditions and laws of me starting a company (LLC) at my current age of 14. I have talked with my parents and they are not to sure if they would want this type situation in case there was a lawsuit or legal action against this company. I have looked into emancipation for Michigan but found out that you have to be 16. Is there any special circumstances that the court would allow me to be emancipated at age 14? What other possible options do I have for starting this company? Also, would it be possible to legally own the company (equity). Otherwise when I would turn 18 an it would be signed over to me, I would be up for paying 30% gift tax to the government. I definety want to avoid that. I also have a uncle that I have worked very close with over the years and am wondering if I could use him to handle the legal part of the company instead of my parents. I do not attend regular school anymore. I tested out of the seventh grade and am going to college.


Asked on 8/28/04, 9:25 pm

1 Answer from Attorneys
Stephen Scapelliti Law Office of Stephen Scapelliti, Esq.

Re: Starting a Company Under 18

One approach to consider is for a parent to create the company and to place the interest of a minor child in trust. A trust document would have to be drafted. Additionally, any invention created by a minor child could be held in the same trust, as an asset-preservation strategy. The trust can provide for distribution of the interest at a particular age.

Emancipation at 16 is a consideration; however, there are benefits to being an unemancipated minor, especially if the minor's interest is being held in a trust. In any event, there are a number of factors which must be considered by an attorney, before choosing an option. There are several means available to protect a minor's interest, each of which has benefits and drawbacks.

This response is not intended as legal advice. Your rights and obligations will depend upon the particular facts and circumstances affecting this matter. You should consult an attorney in your area to discuss all of the relevant facts and circumstances. No attorney/client relationship is created as a result of this response. I may be contacted at 248.788.8225.

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Answered on 8/28/04, 9:45 pm


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