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    9 Replies Latest reply on Aug 1, 2010 10:57 PM by JoshBudde

    Minimum age to file as a member of an LLC?

    plshao Newbie
      What is the minimum age to become the member an LLC? I came up with the idea to start an online retail business and I want to form an LLC. I have done market research, found legitimate wholesale suppliers, and everything else that I could prepare. However, I'm 16 years old and don't know if there's a minimum age to become the CEO or member of an LLC. What do I do? Is there a minimum age for a sole proprietorship?

       

      Thanks
        • Re: Minimum age to file as a member of an LLC?
          LUCKIEST Guide
          Minimum age to file, Welcome

          Who are you?? Go to Members page and share some info/

          I DO NOT think there is a Minimum Age. Do you have a Lawyer??
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          • Re: Minimum age to file as a member of an LLC?
            plshao Newbie
            I do not have a lawyer, and I live in California. I'm really eager to get started, but this is the last step I need before I can do anything else. Also, what exactly is an Agent for Service of Process? I know the LLC cannot act as it's own agent, but can a member of the LLC act as the company's agent? Thanks in advance.
              • Re: Minimum age to file as a member of an LLC?
                Wayfarer
                An Agent for Service of Process(also known as registered agent) is basically just in charge of receiving legal notices for the LLC. As long as your business operates smoothly you will rarely have any involvement with the Registered Agent other than them advising you on how to keep the LLC in compliance with the state.

                As for an LLC Member being the LLC's registered agent, I have seen it happen in many states. With you being 16, I'm guessing you're asking because you want to trim costs and be your own Reigstered Agent. My advice to you would be to have a real one. If you create your LLC online with the help of legalzoom.com or incorporate.com or the many other services out there, they will provide a Registered Agent for you. Their service will cost you a few hundred $ a year but if you want to do things right, do it.

                Also, consider the possibilities of organizing the LLC outside of California. How strong is the corporate veil/LLC veil in California? How much are their annual fees? Do you have an issue with people knowing you are the CEO of the company? You can register an LLC in Delaware or Nevada (Popular strong, cheap, and protective states) without ever setting foot in those states.

                Does California require you have a license to operate a business on top of everything else? Will you apply for a separate Federal TAX ID? These are things you need to consider if you haven't already. As soon as you have all of these things in place and you start generating sales, it will be time to start keeping your financial books. At 16 years old, you will need real guidance when tax time comes. Do you know the rules about paying yourself via an LLC? Generally LLC members can't pay themselves via payroll but rather by keeping the net profit.

                Have fun!

                Sean Murray
                Sure Payment Solutions
                seanm@surepaymentsolutions.com
                www.surepaymentsolutions.com
                  • Re: Minimum age to file as a member of an LLC?
                    KathleenF Scout
                    Pulling out my mom hat here! :)

                    I'm sure surepayguy has used those two links for legal services but I highly recommend you find yourself a local attorney that is familiar with LLC. Never submit payment online for any type of legal services unless you do your research on who the company is. You can check that out by calling the Better Business Bureau or connecting with them online. Providing a "registered agent" and being an approved legally recognized one in the State of California is two seperate things. Be sure to check through the link I provided you above and contact that office for any additional clarification you need.

                    Kathleen
                      • Re: Minimum age to file as a member of an LLC?
                        famhtech Newbie
                        Being 16 in some states limits you.
                        In Texas for instance, you can not enter a legal contract under the age of 18.. you can't even have a checking account....
                        In other states the ages are different.
                        I work with a law firm as a technical consultant and they would tell you all of the above posts with consideration of getting assistance from someone that can help you decide weather to use California with all its red tape
                        or a state like Delaware or Nevada with much more interest in protecting you as the LLC.
                        Where you get help is up to you, where you Form you LLC is up to you..
                        There are corporate lawyers in every state and city that can offer you FREE advice..
                        I lived in Fairfield California when i started me company back in 1980 and a local lawyer there was very helpful and the first meeting was FREE....

                        I have someone that might help you for free? I will have to ask him..

                        The bottom line is, get as much information as possible before you decide...

                        Hope this helps you a little...

                        Frank
                  • Re: Minimum age to file as a member of an LLC?
                    Lighthouse24 Ranger
                    There is no minimum age for LLC membership in CA. However, if you're the sole member and under 18, you may encounter some difficulty getting the licenses/permits and entering into the financial agreements you'd need to actually conduct business. Good luck.
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