Corporate Law Business & minors

[deletemypost]

Hi,

My name is Emily. Let me start from the beginning... The manager of a band offered for me to make a fan club.
It costs $10 for a years worth of membership. Included in that membership is a membership card that I mail out to the customers. Users sign up & pay online and there is a website.

Membership gives them access to that as well. I'm a minor. So, my mom founded a corporation for me, and she's the president.

Orders from the site go to that business account. Every month I get a $45 paycheck from whatever money was made, and I'm listed as an employee of the corp. My mom wants to shut down my company. Well, I'm a minor so I can't just start another on my own. But, I do have a "teen checking account" with Wells Fargo. I made a paypal account associated with that bank account. If my mom does shut down my gateway/company, can I have users pay directly to that (teen) checking account via Paypal or is that illegal? I haven't found anything about this online, probably because it's in the case of a minor.

Let me know what you think and if you have any questions.

Thank you,

Emily



Edited to remove PERSONAL DETAILS and website links.
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Army Judge, MOD

 

[army judge]

First of all, Emily, I applaud your industriousness.

However, as a minor, mom and dad rule supreme in your world.

That is a very god thing. You want to never lose their trust and support.

Don't bite the hand that feeds you. Don't be sneaky, and always keep their love, respect, and admiration.

Please, listen to your mother. I'm certain she has good reasons for what she's doing.

Finally, as a minor, you're what the law considers a legal incompetent.

As a legal incompetent, you inherit many legal disabilities, one of them your inability to contract.

See where I'm headed, Emily, your inability to contract means those with whom you contract can't receive (LEGALLY) what they're buying (contracting to receive), a membership. I could bore you with a long, drawn out legal explanation, so lets stop here.

Why not discuss with mom and dad if it'd be okay for you to continue working for the band and monitoring the website?
If they say sure, then discuss the change with the band. See if they concur, and let one of the 18 year olds create the corporation.

The problem with creating a corporation are the tax ramifications associated with such a scenario. You really don't want a corporation to be behind your fan club.

If mom says its okay for you to manage the website, don't collect anything, ask for PayPal donations. Don't have that PayPal account in YOUR name, place it in the name of of an 18 year old, or someone else. Don't take a salary, taxes rear their ugly head again. Why not just have a pizza party with your fans each month after a show? Heck, invite mom and dad, but do it with their permission. Keep earning their trust, it's very important, young lady.

Trust me, $45/month is much more trouble than you'll ever know. Just forget about the money aspect. The band stands less than a 10% chance of staying together, and less than a .005% chance of becoming as successful as KISS.

But, you play with corporations, salaries, PayPal, teen checking accounts (which are barred from being used as you're proposing), and you're heading for trouble with the TAX MEN AND WOMEN. Again, trust an old lawyer and judge here, trouble with mom and dad would look like a birthday party compared to what those bandits would wreak upon you!!!

Okay, try my ideas, listen to mom and dad, and come back and tell us how things went. I'll be happy to help you get along, track your progress, and further assist you if you need help. But, you follow my tips, mom and dad will be happy, you'll be happy, the band will be happy, and you'll have legions of happy fans.

Good luck, you seem like a very well rounded young person. But, don't defy your parents, don't sneak and do anything, and never anger the TAX MAN OR TAX WOMAN!!!!