Legal regulations for owning a business (Please Read)!?

Question

I am a 13-yr old female and according to relatives, friends, and teachers, it is time to bring my skills to
the next level. I am an expert in making (handmade) custom dog collars, clothes, bandanas, bowties, and especially sketched portraits. I have heard from others as a recommendation that I should open my own business. If I do, I will donate 50% or so of profits to animals in need.
Anyways, my dad is supporting me in this path. We want to know the steps to tax registration (for Connecticut) and anything else I need to do to get my business legally up and running.
This is a very long and difficult process, and as I am a straight-A student, I know I can handle this business with 2-3 orders a day.
We are hoping someone with the knowledge can explain the procedure of registration and age restrictions. We do not yet have our green card, but it is in process and we are legal immigrants.
Is 13 too young to be registering? If so, it will go on my dad's name.
Also, I recently heard that tax registration is not required for ages under 18, is this true?
I don't want to take the risk and need to know the full steps to establishing a company.

All help is appreciated, keep in mind I am located in CT and will ship worldwide so I believe federal registration would be needed as well.
Please include as much detail as possible, thank you!

Answer 1

The regulatioins are different in different states. Go to your state's website and find the web page for Connecticut's Secretary of State. There should be a section for new business owners that will tell you what you need, such as whether you need a state business license for the type of work you do and whether you need to register your business. Because you sell retail goods, you may need to collect and pay sales tax. The website should have all the forms you will need, and tell you about any fees that apply.



One of the things it will address is the different types of business organization. You can probably start out as a sole proprietor, which just means that everything the business has is your personal property, any debts the business incurs you are personally liable for, and everything the business earns is your personal income. (And yes, that means that any profit you make is subject to income tax. If you earn enough, you will have to start filing tax forms with the IRS and your state.) You may eventually wish to make your business one of the types of corporation, but that's a question for another day!



You will probably need an adult to sign with you on any legal forms, because you are a minor. You will definitely need an adult for setting up a bank account for the business, which is something you should do immediately if you have not already. Even if you are a sole proprietor, it is very important that your business funds stay separate from your personal funds. There should be only two points of contact between business and personal finances: When you deposit personal funds into the business account as an investment in the business (which you may not need to do; it sounds as if you have enough money flowing into the business to keep it going), and when you withdraw funds from the business for your personal use. Do not use the business account directly to pay for anything that is not a business expense. Instead, withdraw the funds and note in your records that it was for personal use.



If your school offers an accounting class, I recommend that you take it as soon as you qualify to do so. If it will be a while before you do, I suggest you speak with your guidance counselor and ask if there is any way they can make an exception to let you in early, given your business experience.



Best of luck in all your endeavors!

Answer 2

visit local library for real info.



u do not need to register as a business

until u have one. NOW u don't.



use a library to learn the difference.



now u just making extra money

Answer 3

so you're an "expert"....at crafts....any glued macaroni projects on the horizon?