Is a father-son partnership a good idea?

June 15, 2013 By Leave a Comment

Photo credit: photostock and FreeDigitalPhotos.net

Photo credit: photostock and FreeDigitalPhotos.net

My son wants me to go into business with him. He is selling marshmallow launchers at festivals. I will front all the money to buy the booth spaces and supplies to make the product. He is to give me 40/60, plus the expenses.

After reading your book (Starting a Micro Business), should I front him the money and he pay me back? Or should I do a partnership with him. I would really like him to have credit for starting his own business.

Thanks for your help,
M.D. from Ohio

 

Dear M.D.,
In general I discourage business partnerships. In Starting a Micro Business I share four reasons why partnerships can be a bad idea:

  1. Difficult to dissolve
  2. Unequal efforts from the partners
  3. Liable for the debts of another
  4. Tied for life to your partner

Instead, I usually suggest a parent loan the teenager the start up money and then be repaid over time. That way there is no long term sharing of the profits after the start up loan is paid off.

I hope it goes well and your son learns a lot!

Carol Topp, CPA

Filed Under: Blog, Starting a Micro Tagged With: , , ,

Micro Business Idea: Couponing Blog

June 14, 2013 By Leave a Comment

 

Listen to this great idea.

Mitchell started a coupon and money saving blog at only the age of 15! He is one of the few young bloggers out there to do this.

Mitchell Started Frugal Finders in September of 2009 at the age of 15.

Mitchell started the blog, Frugal Finders, in September of 2009 to share his love of money saving. The blog’s goal is to help others live better, spend less, and save more. Mitchell updates the blog daily with in-store deals, online deals, freebies, and more.

Mitchell, age 19.

The blog has grown exponentially and it’s Facebook page has almost 18,000 likes. The blog also has been given the honored title of, “2012 Savings.com DealPro”.

Besides blogging on “Frugal Finders“, Mitchell also teaches grocery savings workshops through the Savings National program.

Starting_small-259x300If you feel inspired by Mitchell’s story and are thinking about starting a coupon blog, or even something unique like selling Eggs. You should check out my book, “Starting a Micro Business“. I provide tons of tips for setting up your micro business for success.

Carol Topp, CPA

Filed Under: Blog, Micro Business Ideas, Starting a Micro

Micro Business Idea: Furniture Restoration Shop

June 7, 2013 By Leave a Comment

 

This is a cool idea!

Tom Preston, age 19, who has started his first business with the Sandygate Furniture Store.

Tom Preston, age 19, who has started his first business with the Sandygate Furniture Store. (Courtesy of Burnley Express)

Tom, who is 19 years old, just recently opened a furniture store called, Sandygate Furniture Store. The store features restored furniture that Tom has purchased from an auction. Tom restores each piece with his special finishes, then he sells them at his store.

Tom says all of his knowledge of furniture restoration has either been self- taught through online classes or by speaking to other experts.

Originally, Tom was thinking about going to college. After pondering the idea, he decided not to pursue college at this time. He didn’t want to didn’t want to attend college just to rack up student loans that wouldn’t guarantee a definite job when he graduated. So instead, he decided that he would try to use his trade of furniture restoration to open a business. Tom says he is in control of his destiny now.

Source: BurnleyExpress.net

micro-mid-1If you have a knack for restoring furniture, you too should start a Micro Business. It doesn’t have to be a store like Tom’s, instead you could start by selling on eBay or Craigslist. But before you start, you should check out my series, Micro Business for Teens, as I provide great, helpful, information for setting you business up for success.

Carol Topp, CPA

Filed Under: Blog, Micro Business Ideas

Micro Business Idea: Trade Shop

May 31, 2013 By Leave a Comment

19 year old Chris Quagliata opened a trade shop where he sells the items that he purchased from storage lockers.Check this out! Here’s another clever micro business opportunity for teens.

Do you enjoy buying old things to  turn around and sell  for a profit on eBay? Well, so did Chris Quagliata, who is a 19 year old teen that just finished high school at Commack High School.

For the past couple of years, Chris has been going to storage lockers with contents that are being auctioned off. He bids on the locker, wins the bid, and then sells the items from the storage unit on ebay to try to make a profit. If this sounds familiar to you, then it’s probably because it’s the exact same premise that the show, Storage Wars, is based on. However, Chris said he does his bidding without the drama that the show adds.

Recently, Chris stumbled across a locker with old furniture in it. He paid $850 for the storage locker, but little did Chris know what had locker had in store for him.  As he began to search through his newly bought merchandise, he couldn’t believe what he discovered.  A collection of vintage Coca-Cola items. Chris thought that the Coca-Cola items could be  valued at more than $4,000 dollars!

Chris’ entrepreneurial venture has become profitable enough for him to open a trade shop in Morewood shopping center, which he is calling “Quag’s”. Customers can continue to buy Chris’ items on eBay or on Craigslist as well.

Source: Patch.com

Starting_small-259x300If you have an entrepreneurial idea to open a trade shop or sell items on eBay, like Chris did, you should check out my book, “Starting a Micro Business“. I provide great information to help you launch your micro business, including how to write a business plan for success. My book is available in paperback or Kindle format, check it out today!

Carol Topp, CPA

Filed Under: Blog, Micro Business Ideas, Starting a Micro Tagged With: , , , , , , , , ,

Child labor laws and entrepreneurs

May 28, 2013 By Leave a Comment

Snow-shoveling

Do child labor laws affect teenage micro business owners?

The attorneys at Home School Legal Defense Association  HSLDA have some helpful insights into entrepreneurship and child labor laws.

Entrepreneurship and Child Labor Laws

What about a student who wants to start his or her own business? Young people can spend as long as they like writing a book, filming a video, programming a website, painting a picture, or in any other creative endeavor, as long as they are not being paid. If the student is 16 or younger and being paid, he or she is subject to child labor laws.

Typical entrepreneurial activities, such as shoveling snow or babysitting, theoretically count as “working for” an employer—i.e., your neighbor. Restrictions on hours and types of work still apply.

These jobs (shoveling snow or babysitting) involve a teenager working in or around a private residence. These teenagers are considered household employees by the US government. That’s why child labor laws apply to them. I explain this more in Money and Taxes in a Micro Business.

Limits on work hours for teen employees

Typically, the child is limited to 3 hours of work per day during a school week, or 18 hours a week. He may not work before 7:00 a.m. or after 7:00 p.m. except from June 1 to Labor Day, when evening hours are extended to 9:00 p.m. When the public school is not in session (such as during the summertime), children under 16 may work up to 8 hours a day or 40 hours a week.)

Employee or business owner?

Child labor laws apply to children working for an employer, but not to a teenager running a business! You can put in as many hours as you want working on your business.

The US Department of Labor  website explains,

Young entrepreneurs who use the family lawnmower to cut their neighbor’s grass or perform babysitting on a casual basis are not covered under the Fair Labor Standards Act (FLSA)

The FLSA and it’s child labor laws covers employees. Micro business owners are not employees. They are their own bosses.

So work hard at your micro business!

Money_smallNeed help understanding whether your are an employee, household employee or micro business owner? My book Money and Taxes in a Micro Business explains all that and much more. Order a copy today.

Carol Topp, CPA

Filed Under: Blog, Money & Taxes Tagged With: , ,

Micro Business Idea: GreenShields for School Buses

May 24, 2013 By Leave a Comment

Micro Business Idea: GreenShields for School BusesWouldn’t you love to tell your friends that you received a $25,000 grant from Pepsi? Well that’s exactly what Jonny Cohen, age 17 is able to do.

At only the age of 12, Jonny Cohen invented GreenShields, a curved wing that would attached atop school buses to decrease drag and increase fuel efficiency. As an entrepreneur, Jonny pitched his idea of GreenShields, and over the course of a few years, he has now received thousands of dollars in grants, along with a big $25,000 grant that Pepsi gave him to perform more testing, design, and construction of GreenShields.

Jonny Cohen, 17, stands beside the latest prototype of GreenShields.(Courtesy of John P. Huston, Chicago Tribune)

Jonny Cohen, 17, stands beside the latest prototype of GreenShields.

Although GreenShields is not yet in production, Jonny is already estimating that he will sell the GreenShields to schools for $100 a unit. Schools would then save at least $600 from all the fuel savings.

Jonny really wants to learn more about business and has been taking advanced courses in high school for calculus, economics, physics, and engineering design. He’s thinking he might major in either mechanical or financial engineering but still hasn’t decided yet. Read more of Jonny’s story at the Chicago Tribune.

 

Micro Business for Teens seriesIf you’re a teen with an idea for an invention, but you’re not sure how to get started with your business, you should check out my series of books, Micro Business for Teens. I show you how to write a business plan, setup your tax ids, setup any required business licenses, how to record business expenses for tax time, and more.

Carol Topp, CPA

Filed Under: Blog, Micro Business Ideas, Starting a Micro Tagged With: , , , ,

Q&A: How Does a Freelance Teen File a W-9?

May 21, 2013 By Leave a Comment

 

Recently a young entrepreneur emailed me this question:
questionfromKrish

“I am 14, and I use a freelancing site that requires a w-9; how would I go about filling that legally?” – Krish

 Here was my response to Krish:

howdoIfileaW-9?Krish,

You fill in the W-9 with your legal name, address, and Social Security Number. Then give it to the website hiring you as a freelancer. The W-9 does not go to the IRS.

The website hiring you uses the W-9 information to send you a 1099MISC at the end of the year showing how much they paid you  and you report this amount on your tax return.

I hope that helps!

Money_smallIf you have more questions about  filing a W-9 you should check out my book, “Money and Taxes in a Micro Business“. In the book, I explain what a W-9 is and how to file it. My book also explains other taxes you might be faced with as a micro business.

Carol Topp, CPA

 

Filed Under: Blog, Money & Taxes Tagged With: , , , ,

Micro Business Idea: Foot Boards

May 17, 2013 By Leave a Comment

David Stelzi building the Foot Board.

Eight years ago, David Stelzi, age 10 at the time, begun a micro business selling foot boards (or “Wedges”) to local therapists.

The business began when David’s mom had an appointment with a local therapist. She saw that the therapist was selling platforms that supported your angles. These platforms were made out of wood but the craftsmanship wasn’t very good. So she asked the therapist if her son could try making the platforms and sell them instead. The therapist agreed to give David a trial run.

Now right years later, David is selling to multiple local therapists in the Charlotte area. He started printing brochures and putting them in local athletic stores. He also has begun to take direct orders from customers.

Read more of David’s story.

Starting_small-259x300If you have an idea, like David did, to start a micro business, but need help understanding how to start one. You should check out my book, “Starting a Micro Business“.

Carol Topp, CPA

Filed Under: Blog, Micro Business Ideas, Starting a Micro Tagged With: , , ,

Q&A: Is it legal for a 14 year old to run a business?

May 14, 2013 By Leave a Comment

Recently a young entrepreneur emailed me to the following question:Q&A: Is It Legal For A 14 year old to Run a Business?

I am a 14-year old entrepreneur, and I had a simple question that you may have already answered but I may not have found: is it even legal for me to run a business (in the IT field). If so, am I allowed to keep it a sole-proprietorship, or even allowed to form an LLC? -Krish

Here was my response to Krish:

Q&A: Is It Legal For A 14 year old to Run a Business?Krish,

Thank you for contacting me!

Yes, it’s legal for a teenager to run a business, even in IT!
Most teenagers form sole proprietorships and some obtain LLC status as well, but that depends on your state and age limits. The only teenager I know that obtained LLC protection for his sole proprietorship was 18 when he did it.

You can read more about the legal stuff in Running a Micro Business.

My advice on paying taxes is to read Money and Taxes in a Micro Business. Taxes are just too complex to cover in an email or blog post.

Carol Topp, CPA

Filed Under: Blog, Starting a Micro Tagged With: , , , ,

Teen sells mobile app to Yahoo for $30 million

May 10, 2013 By Leave a Comment

Teen Sells Mobile App to Yahoo for $30 millionWouldn’t be awesome to receive a check for $30 million just for developing an iPhone app? This is exactly what happened to 17 year old Nick D’Aloisio.
When Nick was just 12 years old he taught himself how to write software code for the iPhone platform. Then using his knowledge, at the age of 15, he designed a free app named Summly. The app would take long news stories from your favorite news sites and summarize them for your small iPhone screen.

Nick D’Aloisio has become one of the world’s youngest self-made millionaires. (Nadine Rupp, Getty Images / January 23, 2012)

Little did Nick know that this app would later be downloaded more than 1 million times! And to top it off, it even won an award from Apple, “Apple’s Best Apps of 2012 award for Intuitive Touch”.

Yahoo! took notice. Because of the app’s popularity, they decided to buy the app for $30 million.

But that’s not all, Yahoo! also hired Nick as an employee to help Yahoo! design even more amazing products besides the Summly app.

Courtesy of LA Times

micro-mid-1If you’ve ever thought about starting a micro business creating an iPhone app, or even something seasonal like mowing the lawn, you should check out my series of books titled, “Micro Business for Teens“. They provide you with excellent step-by-step instructions and tips on how you can get your micro business started for success!

Carol Topp, CPA

 

Filed Under: Blog Tagged With: , , , ,
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