Business Workarounds for Teens Under 18
Too young to legally form an LLC? Here are real strategies teens use to launch businesses before 18—with or without a parent.
Why Teens Hit Legal Walls
If you're under 18, most states and platforms will block you from:
- Forming an LLC
- Signing contracts
- Opening business accounts
- Getting a Stripe or PayPal account
But those are legal technicalities—not dealbreakers.
Here's how teens actually work around them.
1. Have a Parent or Adult File the LLC
This is the most common path. You stay the operator, but an adult is the official member.
You:
Run the business
Them:
Sign forms, help open accounts
Once you turn 18, you can legally take over.
How to structure this properly →2. Use a Manager-Managed LLC
In some states, you can list an adult as the manager of the LLC, while you stay behind the scenes.
This lets the adult:
- Sign legal forms
- Open bank and Stripe accounts
You handle day-to-day work without being the official owner (yet). This structure can be updated later.
3. Start as a Sole Proprietor
You don't technically need an LLC to start.
You can launch as a sole proprietor, especially if:
- You're doing low-risk services (like tutoring or freelancing)
- You're under your parent's tax umbrella
- You're not yet hitting $10K+ in income
Later, convert to an LLC when you're older.
4. Form the LLC Under a Trust or Family Business
Some families create a trust or umbrella business that legally owns the new LLC.
This is more complex but gives long-term flexibility. You'll need:
- A trusted adult to set it up
- Legal or tax help to structure it right
Not common, but useful for teens building something big.
5. Use Adult-Owned Accounts to Launch
If your business depends on tools like:
...you'll need someone 18+ to open the accounts.
But you can:
- Run the operations
- Manage fulfillment
- Receive payments through the adult's bank, then transfer funds
It's legal—as long as the adult is involved and aware.
Important: Trust Matters
Whoever you involve—make sure they're reliable.
You're trusting them with:
- Legal documents
- Financial control
- Your vision
It's worth writing a simple agreement (even handwritten) to protect your role.
Tips for involving a parent or adult →