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Can a minor apply for an LLC?

eaf1213
Level 4

My clients daughter wants to open her own candle business but is only 17. As a minor can she apply for an LLC on her own or does she have to have her parent do it? 

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14 Comments 14
George4Tacks
Level 15

This sounds like a legal question and would likely vary according to the state of residency. This is not something that I would answer for a client. Is the client aware of all of the costs associated with a LLC?

 


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sjrcpa
Level 15

You don't apply for an LLC. You form one. As George said, this is a legal question. I'm thinking she probably has to be over 18 to form one, but a lawyer or other agent can do that. Next legal question - can she own an LLC?


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eaf1213
Level 4

Yes, I meant form one as an owner. The state of residency is Ohio. I haven't found any information as far as an age requirement.   

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qbteachmt
Level 15

Why is an LLC even a consideration? Just file for an EIN "for banking purposes" to avoid giving out the SSN and then file taxes on Sched C.

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eaf1213
Level 4

She wants it to be an LLC  for personal liability purposes. 

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qbteachmt
Level 15

And just how much does a minor have "at risk?" Isn't it the Parents that should worry about liability? Have they talked to an attorney and perhaps their own insurance agent?

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eaf1213
Level 4

They are just trying to set it up right for when she does turn 18 and the liability is hers.

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linette
Level 5

Ask attorney to make sure but in my state they can form even though they aren't 18.

State application does not even ask age.

I think this is wrong since they can't enter into a legal contract, but that is what I found out when I had a minor walk in whom had already form the business and now wanted to know how to file taxes.....

 

sjrcpa
Level 15

@linetteThanks for the info. What state are you in?


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linette
Level 5

Oregon

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Rick19744
Level 3
Level 3

@linette Not sure that response agrees with Oregon Statute 63.044 ?

ORGANIZATION

 

      63.044 Formation. One or more individuals 18 years of age or older or other entities may form a limited liability company by executing and delivering articles of organization to the office for filing. Organizers need not be members of the limited liability company. [1993 c.173 §14]

I think the response is that it requires a call to the respective Secretary of State to understand the requirements.

linette
Level 5

Rick, Yes I am aware of that.

My mistake was that when this young man walked into my office I made the assumption that the state checked that.  I learned they don't.

 

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Rick19744
Level 3
Level 3

Government at its best.

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sjrcpa
Level 15

Theory question - Does this mean that the LLC is invalid? Or, does it mean it could be, but that if others acknowledge its existence and accept it (I forget the legal term for this) then it is a valid LLC?


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