Kids just want to be kids. But kids also want to be grown-ups. That’s why letting kids have neighborhoods lemonades stands, yard sales or lawn mowing businesses is a greater way for them to learn responsibility and the value of a dollar.
However, child-run businesses can sometimes run into problems if they’re not legalized. Believe it or not, neighbors will complain to have a business shutdown if there aren’t proper permits and paperwork.
Cities, countries and states have laws that requires businesses to secure permits and licenses to be operated. Those rules can be extended to just about every business, including those owned by a child.
An increasing number of states and communities have started to make it much easier for young entrepreneurs to make money, but in many communities, children and teens need to secure the right paperwork for lawfully running their businesses. Depending on the age of children, parents will need to help.
For the typical lemonades stands, lawn mowing businesses or snow shoveling operations, young entrepreneurs will need to cross check with local officials to determine the compliances requirements.
Can kids have a business?
Yes, kids can have businesses. Owning a business is a great way for children to focus their energy and efforts on something positive instead of sitting around the house. It is important to be noted that a business is a business, no matter the age of the person in charge.
Businesses must adhere to certain legalised requirements, and parents must be understanding these requirements are to make sure that their kids businesses are legalised. In addition to completing paperwork, such as that obtaining a permit, you may have to pay taxes on the money the business is earning. If your kids are earning more than $400, they may have to pay some type of taxes.
Do your homework.
The first-ever step is to search for more information on the website of the city and county where the business will be located, or just head down to your city hall to find the officials in charge.
These officials can oftentimes be found in a community’s finances or revenue departments. To secure a permit or a license, business owners will need to fill out forms and pay a fee, which can start around $50.
Do kids need a business license?
Yes, any business needs a license, even if it’s run by a kid; the age of the person running the business does not matter. It is important to make sure your kid’s business is up to code because anyone can decide to report the business to the authorities.
City and county officials in the jurisdictions where the business is located can outline the requirements, explain penalties for non-compliance and provides the proper paperwork to get the process rolling.
You might be asking yourself, why go through all of this if it’s just a lemonade stand? What harm could it do? Neighbors or passer-by often have the time and proximity to tattering some cases, neighbors might be having a feeling of inconvenience, because customers to the lemonade stand next door are blocking their driveways or adding more noise or traffic to their usually quiet residential street. Passers-by may be concerned that teens handing out fliers for their snow-shoveling business may be casing a neighborhood and up to no good.
In addition, competitors have snitched on kid-owned businesses. A landscaping company, for instance, could report a teen-run lawn-mowing businesses for noncompliance to weed out cheaper competition.
It’s also important to be aware of the legal risks and liabilities of not making sure your child’s business is legally compliant.
“Kids who run their businesses without the correct permits or licenses can face closure and other penalties, including but not limited to fines,” Williams said. He added that a run-in with regulators is almost never a fun experience, especially for a young entrepreneur who is dreaming big.
But fear not. For parents who want to be a helping hand to their child starting a business, there are plenty of resources out there to make sure it is done the right way. For example, many sites provide links to state-specific license and permit information, and even offers resources for home-based businesses.
What are good businesses for kids?
The best way to decide what types of business is right for your kid is to encourage them to pursue their passions. If your children can work in an area they enjoy, start by helping them find that area.
When parents think about helping their children start a new job, the first-ever jobs that often come to mind are setting up a lemonade stand and babysitting. However, there are many other jobs that can be even more exciting to a child. Children maybe excellent at making baked goods and candy, for an example. If they’re not interested in doing the baking, they can decorate the desserts instead; they maybe able to find a baker who needs a decorator. Or, perhaps if they love animals, so they can be dog walkers or pet sitters. And someone always needs to have a car washer, so kids could be starting a car-washing business. They can even start a YouTube channel or a podcasting channel for other children.