To start a business at 15, you take the same steps an adult does — pick a structure, file formation paperwork with your state, get a federal tax ID, open a bank account, and handle local permits and taxes — but a parent or legal guardian has to sign the binding parts, because contracts signed by a minor are voidable and most banks, states, and platforms won’t deal with you directly. Filing fees usually run somewhere between $35 and $500 depending on your state and the entity type, and if you file online, you can be up and running in a few days.
Why a Parent or Guardian Has to Be Involved
Anything a person under 18 signs is generally “voidable.” You can honor the deal or walk away from it, and the adult on the other side stays bound either way. Landlords, suppliers, banks, and payment processors know this, so they won’t sign directly with a 15-year-old — nothing would stop you from canceling the next day.
Your guardian solves the problem by co-signing. They put their name on leases, vendor contracts, formation paperwork, and account applications so the other party has an adult who is legally on the hook. Your guardian doesn’t have to run the business day to day. Their signature is what gives your commitments legal weight.
Emancipated minors are the narrow exception, since emancipation grants close to full adult contract capacity, but it’s a court process, rules vary by state, and most 15-year-olds won’t qualify. Assume your guardian is in the picture for every step below.
Sole Proprietorship or LLC
Most teen businesses are either a sole proprietorship or a limited liability company. A sole proprietorship is the simplest: in most cases there’s nothing to file with the state, and you report income on your personal tax return. The catch is that you and the business are legally the same thing. If the business owes money or gets sued, your personal savings are exposed.
An LLC creates a separate legal entity that shields your personal assets from business debts. If things go sideways, creditors generally can’t reach your personal accounts. Forming an LLC also forces good habits early — a dedicated bank account, real record-keeping, and clean separation between personal and business money. The price is more paperwork and a filing fee.
A sole proprietorship can make sense for something low-risk like tutoring or lawn care. If you’re selling products, spending real money on inventory, or handling other people’s property, the LLC’s liability protection is worth the cost. Your guardian is usually listed as the LLC’s organizer or manager, since they’re the one signing the formation documents.
Filing the LLC With Your State
Pick and Clear a Name
States require your business name to be distinguishable from other registered entities. Search your Secretary of State’s online database before you get attached to a name. If you’re running a sole proprietorship under anything other than your legal name, you’ll file a “doing business as” (DBA) registration instead.
Name a Registered Agent
Every LLC must have a registered agent — a person or company with a physical street address in the state, available during business hours to accept legal documents on the business’s behalf. A P.O. box doesn’t count. For a teen-owned LLC, a parent or guardian is the natural fit.
File the Articles of Organization
The formation document is usually called Articles of Organization or Certificate of Formation, depending on the state. It asks for the business name, the registered agent’s name and address, a physical business address (no P.O. boxes), and the organizer’s name. Your guardian should be the listed organizer and sign the filing, since a minor’s signature makes it voidable. You’ll also need Social Security numbers for identity verification.
Fees and Timing
Most Secretary of State offices let you file online, with confirmation in a few business days. Paper filings can take two to four weeks. Filing fees generally fall between $35 and $500 and are non-refundable if your application gets rejected for an error, so check everything before you submit. Expedited processing is often available for another $100 to $300 if you need same-day or next-day turnaround.
Once approved, the state issues a Certificate of Organization or a stamped copy of your Articles. Keep both a digital and printed copy — you’ll need it for the bank, for permits, and to verify the business to vendors.
Getting Your EIN and Bank Account
A Federal Employer Identification Number is your business’s version of a Social Security number. Even with no employees, an EIN keeps your personal SSN off business paperwork and is required by most banks. The IRS issues them for free, and the online application takes about 15 minutes.
The application asks for a “responsible party” — the person who ultimately controls the entity. Since your guardian is signing the binding documents and holds the legal authority, they’re the natural fit, and they’ll provide their SSN or ITIN on the application.1Internal Revenue Service. Responsible Parties and Nominees2Internal Revenue Service. Instructions for Form SS-4 (12/2025)
Banks generally require account holders to be at least 18, so you’ll need your guardian as a joint account holder. Bring the Certificate of Organization, your EIN confirmation letter, and government-issued ID for both of you. Some banks require an initial deposit, so ask ahead. The joint account gives you access to deposit and withdraw funds while giving the bank an adult who is legally responsible.
Keep business money strictly separate from personal money. Mixing funds makes taxes harder and, if you formed an LLC, can undermine the liability protection you set the LLC up to get.
Local Permits and Sales Tax
Many cities and counties require a general business license or operating permit, even for home-based businesses. Fees typically run $50 to $400. If you’re operating from home, check whether your city also requires a home occupation permit, which confirms your activities comply with residential zoning rules — often including limits on signage, customer visits, noise, and non-resident employees. Not every municipality requires a general business license; the only way to know is to call your city or county clerk. Skipping this step can bring fines that are easy to avoid.
If you sell physical products, or certain digital goods and services depending on the state, you likely need to register for a sales tax permit (sometimes called a seller’s permit) through your state’s department of revenue. Registration is usually free, and your guardian may need to sign the application. Forty-five states plus Washington, D.C. impose a general sales tax, so unless you’re in one of the five states without one, plan on looking into it.
Taxes You’ll Owe
Self-Employment Tax Starts at $400
If your net business profit hits $400 in a year, you owe self-employment tax. There’s no exception for age.3Office of the Law Revision Counsel. 26 U.S. Code 1402 – Definitions The combined rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare.4Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) In a regular job the employer pays half; when you’re self-employed you pay the whole thing yourself. You can deduct the employer-equivalent half when calculating adjusted gross income, which reduces your income tax. Report it on Schedule SE with your Form 1040.
Income Tax When You’re a Dependent
Self-employment tax and income tax are separate. As a dependent on your parents’ return, your standard deduction is based on your earned income (generally earned income plus a set amount, capped at the regular standard deduction). If your total income is below that deduction you won’t owe income tax, but you still owe self-employment tax on net earnings over $400.4Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) The “kiddie tax” only reaches unearned investment income like interest and dividends, so it doesn’t apply to your business profits.5Internal Revenue Service. Topic No. 553, Tax on a Child’s Investment and Other Unearned Income (Kiddie Tax)
Quarterly Estimated Payments
Self-employed people pay taxes in quarterly installments instead of through paycheck withholding. For 2026, the deadlines are April 15, June 15, September 15, and January 15, 2027.6Internal Revenue Service. 2026 Form 1040-ES – Estimated Tax for Individuals Skip them and end up owing $1,000 or more at filing time, and the IRS adds an underpayment penalty.7Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty You avoid the penalty by paying at least 90% of the current year’s liability or 100% of last year’s, whichever is less. If this is your first year in business and you owed nothing last year, the prior-year rule works in your favor since your prior-year tax was zero.8Internal Revenue Service. Estimated Tax
Records
Track every dollar in and out from day one. Keep receipts, invoices, and bank statements organized by month. Good records let you claim legitimate deductions — supplies, materials, software, advertising — and protect you if the IRS ever questions your return. A simple spreadsheet is fine for a small operation.
Selling Online as a Minor
Most major online marketplaces require account holders to be at least 18, which surprises a lot of teen sellers when they try to open a storefront. Etsy is one of the more accommodating platforms: it allows sellers between 13 and 17, but only under an account registered in a parent or guardian’s name, with all financial information — bank account, payment details — belonging to the adult, who must be listed as the shop owner.9Etsy. Can Minors Sell on Etsy?
eBay and Amazon generally require sellers to be 18 with less explicit accommodation for supervised minors. In practice, your guardian registers the account in their name and you operate it under their supervision, which is the same arrangement you already have with banking and contracts. Building your own website avoids the platform age rules, but you’ll still need your guardian to sign up for payment processing through services like Stripe or PayPal.
Do Child Labor Laws Apply?
Federal child labor rules under the Fair Labor Standards Act govern the employer-employee relationship — they limit what hours and jobs an employer can give a worker under 18. When you’re running your own business, there’s no employment relationship, so those federal restrictions generally don’t reach your own activities.10U.S. Department of Labor. Fact Sheet #43: Child Labor Provisions of the Fair Labor Standards Act
State laws can be broader. Some reach certain activities, particularly work involving hazardous materials, heavy machinery, or late-night hours. If your business involves anything beyond desk-and-computer work, check with your state labor department. For typical teen businesses like graphic design, tutoring, or selling handmade goods online, this is a quick check rather than an obstacle.
Keeping the Business in Good Standing
Forming the LLC isn’t a one-time job. Most states require an annual or biennial report — a short update confirming your business address, registered agent, and management. Miss the deadline and the business can lose good standing, which blocks you from filing lawsuits, amending formation documents, or in some states operating at all. Go long enough without filing and the state can dissolve the LLC.
Annual report fees range from nothing in some states to several hundred dollars in others. A handful of states also charge a minimum franchise or privilege tax just for the right to operate as an LLC, regardless of income. Set a calendar reminder well before the deadline and budget the fee as a fixed annual cost.
Keep your registered agent information current too. If you move or your guardian changes, update the state promptly. An outdated registered agent means you could miss a lawsuit or government notice and lose the chance to respond.