My Thirteen Year Old Starts A New Business......My Immediate Concerns

tiggy

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Hi All

She is aged thirteen and keen to have started her mini company....Great.

I have encouraged her all the way and am so proud of her determination to date.

She is importing product from China and adding a mechanism to facilitate the great game of Hurling and re branding it and selling it to the end user or GAA clubs..........Keen not to break forum rules here.

I cannot have my name linked to this company for pure and legitimate reasons.
My concerns are liability for VAT, Income tax, books later on which will ultimately fall back on us her parents if anything crops up! These units are not cheap and retail for 40 Euro each. She has pre-sold 120 units so far and is probably going to sell lots more !

I have researched and know that up to 37,500 Euro does not require registration for Vat. However she will pay 23% flat rate either way when product arrives here. Would it be desirable to have company registered for VAT. Note not sure if this can be done legally.

Any help or pointing in the right direction would be greatly appreciated.

Regards

Tiggy
 
She is aged thirteen and keen to have started her mini company....
Ok I'm a bit confused here. At age 13 your daughter has no legal capacity to start her own company or to enter into any contractual obligations. The company directors must be over 18 so she can't be a director.
However she will pay 23% flat rate either way when product arrives here
Company or individual can elect to register for VAT at under these thresholds.
She is importing product from China
How is she doing this herself? Somebody other than herself must be paying for these products up front!
 
Ok I'm a bit confused here. At age 13 your daughter has no legal capacity to start her own company or to enter into any contractual obligations. The company directors must be over 18 so she can't be a director.

Company or individual can elect to register for VAT at under these thresholds.

How is she doing this herself? Somebody other than herself must be paying for these products up front!

Hi 44brendan

Thanks for chiming in here.

She was involved in The Local Enterprise Awards final. This sparked that drive to continue on the path that she is on. I helped her when and where needed . She has not sold anything to date. We received a few samples from China. A deposit has been paid for the first shipment through LC (letter of credit). We have obviously shouldered the finances and will continue until sales are generated. I think what you are suggesting is that one of us as parents would facilitate this company formation on her behalf. That is not an option at this time.
 
I think what you are suggesting is that one of us as parents would facilitate this company formation on her behalf.
Well if not then you will need the involvement of other adults as she is too young to either form a company or enter into any contracts. Legal age for either is 18!
 
Unless there's a strong probability that this project will generate significant income, forming a limited company as a vehicle for it is likely to be an expensive overkill. As would be a decision to register for VAT if its turnover is likely to be below the compulsory registration threshold.

Unless either or both of her parents are able and willing to front the venture in their own name(s), it's not going to take off.
 
Agree that it is not a good idea to set up a company.

I wouldn't worry too much about the fact that a 13 year old can't enter a contract. Do her suppliers or customers know that? As it's small scale and as I assume that she is not trying to scam anyone, support it.

Brendan
 
I be more concerned with my child growing up too soon. There's loads of years ahead for working and setting up business when your 13 I think that's too much. 13 year olds should be care free and out playing with there mates , not thinking about importing stuff from China! I'd discourage it. I started working early and mates went to college I regret them years they partied hard and I was working ! I would discourage my child from it even if they were keen , I'd perhaps lets them sell one object on eBay as a compromise .
 
Thanks 44brendan / T McGibney / Brendan Burgess and Fella. I appreciate your thoughts and your time here so much. My daughter has always been keen, forward thinking and Entrepreneurial now that I think of it. This was never meant to be anything more than a project in her business class in school. The thing is she has created something that fulfills a need and does not exist in the marketplace. She did most of the donkey work herself. I would edit any correspondences prior to sending. Again Thanks to all.
 
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