Legal Question in Business Law in Pennsylvania

Kids starting businesses

I have a friend who is only 13 and wants to start a business. How do his parents have to get involved, and what papers need to be filed to start a legal corporation? Would he still be able to sign contracts or open bank accounts on behalf of the company? Would he be able to make purchases for the company himself? How many shares could he own? I would just like to know the specific laws concerning this.

If you can answer this, are there different laws in different states?

Thanks


Asked on 3/01/05, 4:42 pm

2 Answers from Attorneys
Mark Johns Mark Johns, Esquire

Re: Kids starting businesses

A 13 year old cannot enter into contracts and can't have a checking account. My suggestion would be for a parent or other trusted adult to hold the shares of the Corporation in trust for him.

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Answered on 3/01/05, 8:02 pm
Marc V. Taiani AAAL - Allegheny Attorneys At Law

Re: Kids starting businesses

A 13 year old is considered a minor and cannot enter into contracts...if he wants to start a business he must let a trusted adult do it for him, then have a trust created which contains the business and to have said business transfered to your friend once he turns 18....furthermore this adult needs to file registration papers with the state...it is best you consult with an attorney prior to acting!

My office also offers flat rate pricing and free consultations, for additional information please visit my firm's website at www.AlleghenyAttorneys.com or by calling my office at 412.731.0865.

Sincerely,

Marc V. Taiani, Esquire

AAAL - Allegheny Attorneys At Law

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Answered on 3/02/05, 9:37 am


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