Is a father-son partnership a good idea?

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

Micro Business Idea: Foot Boards

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

Teen sells mobile app to Yahoo for $30 million

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

 

Raising Great Men

I had a fun interview with Marie Roker-Jones host of the podcast Raising Great Men.

We talked about how a teenager can start a micro business this summer and pitfalls to avoid.

Listen to internet radio with Marie Roker Jones on Blog Talk Radio

Marie does a great job encouraging parents raising boys to become men of character, inspiring and preparing them to change the world.

Her website is RaisingGreatMen.com

 

Business at 19. President at 56!

            Harding, Age 17

Many of our Presidents have made their millions owning their own business, but none so inspiring as

                                               President Warren G. Harding.

He learned the basics of the newspaper business by age 10 at The Argus, his father’s newspaper business.

                                                               By age 17, he was a college graduate.

At age 19,  he pooled his money together with others to purchase The Marion Daily Star (Marion, Ohio)  newspaper

–a fledgling & struggling newspaper for $300.

newspaper

By the age of 21, he was the sole owner — working hard to make it successful & the city’s primary paper.

At the end of his presidency, knowing his journalism career would not be revived, he sold the business for $550,000.  

His newspaper was a powerful platform for him to become President at age 56.

Moreover, it taught him hard work, determination and perseverance through trial.  

                                                            We make heroes of our Presidents.

Today, you can become a teenage micro business owner and some day, it might lead to bigger things!

Teens and taxes radio interview

I had a great interview with David Holland a fellow-CPA and host of Real Money Radio

Listen here

We talked about:

The entire interview lasts about 30 minutes, so listen in and learn a lot!

Carol Topp, CPA

Last day to get Money and Taxes in a Micro Business for free

 

 

This is the final day that Money and Taxes in a Micro Business will be available as a free Kindle ebook.

Money_small

Get your free ebook here

No Kindle? No problem! Read the book on your computer, phone or tablet.

 

Money and Taxes in a Micro Business is part of the Micro Business for Teens series.
-Ways to increase your profits
-What taxes you might owe
-How to reduce your taxes
-How sales tax works
-What to do about hiring employees
-How to work with an accountant

 

“If you want to start a small teenage business, this is the book for you! ”

“ If your child wants to start her own business, things can turn into a spaghetti factory very quickly if she is not aware of what taxes she will owe. ”

(but a lot of adults read the book too!)

 

Available for free  only until midnight February 1, 2013 here

 

Please forward this to your friends.

 

Carol Topp, CPA

Author Money and Taxes in a Micro Business

Micro Business Idea: Eggs!

17-year-old Daniel Lloyd runs his business selling eggs from his grandparents’ house in Kempsey. Picture by John Anyon.

This teenager runs a micro business selling eggs.
Daniel Lloyd, aged 17, of Warndon Villages, began selling the eggs that he gathers from his own hen house that he keeps at his grandparents’ home. His greatest market is actually his school, where he sells his product to teachers and fellow students.

Daniel has won the  Tryangle Award, which rewards budding teen entrepreneurs in their efforts.

A council spokesman said: “He has been recognized for taking the initiative to start this business, from keeping the chickens and making contacts with people to make the business successful.”

His mum Kate said: “He was so chuffed when he got the certificate. He’s got it all sussed out, it’s his own little enterprise.”
Read more here

We like to call them “micro businesses” not “little enterprises,” but we know you’re proud of your son.

This is a fantastic micro business idea!

Teens, you can have your own business, just like Daniel! Do you have a hobby or passion? It could be anything from music to raising chickens. There is a micro business there! See my blog for ideas, or pick up a copy of my book, Starting a Micro Business, to get yours going!

Carol Topp, CPA

Micro Business Idea: Writing for Magazines and Books!

Turn a hobby or passion into a money making micro business!

I heard about Jonathan Hilton at a graduation party where I met his mother.  She told me how Jonathan made money from chess. “Do you mean prize money?” I asked. “No,” she explained, “by writing magazine articles and books.”

Jonathan was selling his knowledge about chess and people are willing to pay for what he knows!

As a 19-year-old college freshman Jonathan held the title of National Master from the United States Chess Federation.

He wrrote articles relating to his experiences at playing chess abroad and co-authored  “Wojo’s Weapons: Winning With White,” with International Master Dean Ippolito.

For those who might be interested in learning about chess but fear it just isn’t “cool,” Hilton has these thoughts: “Chess is something that transcends all ages and cultures. I’ve been in situations where I didn’t speak the same language as the other player, but yet I was still on such good terms with them because we could play, we could analyze and we could learn some things. Chess unites people because you have a common experience and a common passion.” http://www.uc.edu/spotlight/student/jonathan_hilton.html

You may not hold a national title, but you may know something about some thing, right?

Start writing it down!  Start a blog, write some articles and see if magazines are interested in paying you for your knowledge and perspective on life. Maybe even consider writing a book. Other teenagers have done it, why not you?

If you need help getting started, my book, Starting a Micro Business, is a great resource to get your micro business off the ground!

Pick up a copy today.

Carol Topp, CPA

Teens and Taxes

My other website TeensAndTaxes.com can help parents and teenagers understand:

  • When does a teenager needs to file a tax return
  • Can a parent still claim their teenager as a dependent
  • How much can a teenager make before they owe taxes

I also sell an ebook, Teens and Taxes

Pdf version (easy to read on your computer)   $3.00

Kindle version $2.99

Nook/ other ereader versions $2.99

Happy tax season!

Carol Topp, CPA