Legal Question in Business Law in New York

Re: under 18yo Business

While I know of no law against it, a 16-year-old can't operate a business since no one will accept a contract or lease from a minor until that minor reaches the age of majority -- at 18. Contracts signed by persons under 18 are voidable at the option of the person under 18, and every tradesperson knows that, either because someone has told him or because he's gotten burned by it. It only takes one burning to etch that one on a merchant's brain forever.

Certainly a 16-year-old may own stock in a business, but the stock is generally held in a trust account by the parent or guardian as fiduciary -- again due to the age of majority factor.

Legal ownership of a business is done through stock. See above.

Now, if you're talking about something like an Amway dealership, I believe they allow kids to sign up under their parents at 13 or so. However, until the kid hits 18, the parent remains the owner of the business and responsible for the activities of the business.

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