How to Start a Business at 14: Parent Consent, EIN, and Taxes

You can legally start a business at 14, and the steps to start a business at 14 look a lot like the steps for any adult: pick a structure, register with the state, get a tax ID if you need one, open a bank account, and line up your permits. The one thing that’s different is the paperwork itself. Because anyone under 18 can walk away from most contracts, banks, landlords, and state agencies want an adult on every signature line. Your parent or legal guardian fills that role. You own the business and run it; they sign for it.

Why a Parent or Guardian Has to Sign

Contract law treats minors as unable to be bound the way adults are. Under the Infancy Doctrine, someone under 18 can cancel most contracts before turning 18, and the other side has little recourse. That’s why a bank won’t hand you a business account, a supplier won’t extend credit, and the state won’t accept your solo signature on formation documents.

The workaround is straightforward. Your parent or guardian signs contracts, serves as the registered agent or manager on formation documents, and takes on legal responsibility for the business’s obligations. You keep ownership and day-to-day control. This isn’t optional dressing on the arrangement; it’s the piece that makes the whole thing workable.

Sole Proprietorship or LLC

For most 14-year-olds the choice comes down to two structures.

A sole proprietorship is the simplest. No formation paperwork, no state filing fees, and you can start operating immediately. Mowing lawns, tutoring, selling crafts — this is usually all you need. The catch is that there’s no legal separation between you and the business, so if something goes wrong your personal assets are on the line. For a teenager with few assets, that risk is often manageable. You may still need a “doing business as” (DBA) name filed with your county clerk if you want to operate under something other than your own name.

A limited liability company puts a legal wall between the business and your personal finances. If the business is sued or takes on debt, your personal belongings are generally protected. You’ll pay state filing fees, submit Articles of Organization, and handle annual filings. An LLC makes more sense if you’re taking on clients, selling products that could cause injury, or building something you want to grow. Every state allows minors to hold LLC membership interests, but the operating agreement should name your parent or guardian as the manager with authority to sign for the company.¹

Registering the Business

Sole Proprietorship

If you’re operating under your legal name, most states don’t require any formal registration. If you want a business name like “Jake’s Lawn Care,” file a DBA with your county clerk or state agency, depending on where you live. It’s usually under $100 and takes a few minutes online or one trip to the clerk’s office.¹

LLC

Forming an LLC means filing Articles of Organization with your state’s Secretary of State. The document lists the company name, business address, members, and registered agent. For a minor-owned LLC, you’d be listed as the member (owner) while your parent or guardian is named as the manager and registered agent. Most states let you file online; a few still require paper submissions.¹

Filing fees run from under $50 to several hundred dollars depending on the state. Standard processing takes a few weeks; expedited service costs extra. Once approved, you’ll receive a certificate of organization or a stamped copy of your filing. Keep that document — you’ll need it to open a bank account and apply for permits.

Tax ID and Bank Account

Getting an EIN

An LLC needs an Employer Identification Number from the IRS. It’s a nine-digit number that works like a Social Security number for the business, used for tax filings and required by most banks. You apply on Form SS-4, and the online application is free with immediate approval.²

There’s no minimum age for getting an EIN, but when a minor applies, the parent or guardian’s Social Security number is required and the parent is listed as the “responsible party.”³ Register your LLC with the state first, because the IRS may delay your EIN application if the entity doesn’t already exist in state records.²

A sole proprietorship with no employees doesn’t need an EIN. You can use your Social Security number instead.

Opening a Bank Account

Keep business money separate from personal money from the start. It simplifies taxes and is essential if you have an LLC. Banks won’t let a minor open an account alone, so you’ll set up either a joint account with a parent or a custodial account. A joint account lets you deposit checks, use a debit card, and handle daily transactions while your parent keeps oversight — usually the better fit for a business. Bring Social Security cards, photo ID, and a copy of your Articles of Organization or DBA certificate.⁴

Permits and Licenses

Local government sets most licensing rules, so your city or county website is the first place to check.¹

If you run the business from home, many municipalities require a home occupation permit from the local zoning board to confirm your operation won’t create excessive traffic or noise. Fees are usually between $50 and $200. Skipping this can bring fines or an order to shut down. If you sell physical goods, you’ll likely need a sales tax permit from your state’s department of revenue so you can collect and remit sales tax.

Taxes You’ll Owe

Your age doesn’t change the tax rules. The IRS treats your business income the same as anyone else’s, and this catches a lot of young entrepreneurs off guard.

Self-Employment Tax

Once your net business earnings hit $400 in a year, you’re required to file a federal return and pay self-employment tax.⁵ The combined rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare.⁶ When you work for someone else, the employer pays half. When you’re self-employed, you pay both halves. That’s before income tax enters the picture.

Income Tax

Whether you owe income tax on top depends on how much you earn. As a dependent claimed on your parent’s return, your standard deduction for 2026 is the greater of $1,350 or your earned income plus $450, up to a maximum of $16,100.⁷ So if you earn $5,000, your standard deduction is $5,450 and you’d owe no federal income tax. You’d still owe the 15.3% self-employment tax on net earnings above $400.

Quarterly Estimated Payments

Self-employment income has no automatic withholding. If you expect to owe $1,000 or more for the year, the IRS wants quarterly estimated payments rather than one bill in April. Use Form 1040-ES to calculate what you owe and pay four times a year.⁸ Missing these can trigger penalties.

How Many Hours You Can Work

Federal child labor rules under the Fair Labor Standards Act limit 14- and 15-year-olds to no more than 3 hours on a school day, 18 hours during a school week, and 8 hours on a non-school day, with a 40-hour cap when school is out. Work hours run between 7 a.m. and 7 p.m., extended to 9 p.m. from June 1 through Labor Day.⁹

These rules are written around the employer-employee relationship. The FLSA defines “oppressive child labor” as a condition where a minor is “employed by an employer,” and the statute’s restrictions apply to employers who hire minors.¹⁰ A genuinely self-employed 14-year-old running their own lawn care business or online shop doesn’t fit that framework cleanly, so the federal hour limits don’t directly govern how long you spend on your own venture.

Don’t read that as unlimited hours, though. Some state child labor laws are broader than the federal rules and don’t draw the same line between employment and self-employment. School attendance laws still apply. The federal numbers are a sensible pacing guide even where they don’t technically bind you.

COPPA if You Have a Website

If your business runs a website, app, or online platform, one federal privacy rule can apply. The Children’s Online Privacy Protection Act covers any online service that collects personal information from users under 13. What triggers COPPA is the age of your users, not your age as the owner.¹¹

If your site could reasonably attract visitors under 13, you need a clear privacy policy, verifiable parental consent before collecting personal data from those users, and a way for parents to review or delete their child’s information. Updated rules taking effect in April 2026 expand the definition of personal information to include biometric data and government-issued identifiers, and require separate parental consent before sharing a child’s data with third parties.¹² FTC fines for violations can be significant. If you’re building a YouTube channel, a social brand, or any platform where kids might show up, take COPPA seriously from day one.

Keeping the Business in Good Standing

Starting is only the first expense. If you formed an LLC, most states require an annual or biennial report to keep the entity active. Fees range from nothing in a few states to several hundred dollars, with most under $100. Miss the deadline and your LLC can be administratively dissolved, which means losing liability protection and the right to use the business name.

Other recurring items include sales tax permit renewals, home occupation permit renewals, and any industry-specific licenses. Keep a calendar of every renewal date and filing deadline from the start. A lapsed permit or missed annual report costs far more to fix than to prevent.

1
U.S. Small Business Administration. Register Your Business
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Internal Revenue Service. Get an Employer Identification Number
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Internal Revenue Service. 21.7.13 Assigning Employer Identification Numbers
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U.S. Small Business Administration. Open a Business Bank Account
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Social Security Administration. If You Are Self-Employed
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Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
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Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
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Internal Revenue Service. Self-Employed Individuals Tax Center
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U.S. Department of Labor. Fact Sheet 43 – Child Labor Provisions of the FLSA for Nonagricultural Occupations
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Office of the Law Revision Counsel. 29 U.S. Code 203 – Definitions
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Federal Trade Commission. Children’s Online Privacy Protection Rule
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Federal Register. Children’s Online Privacy Protection Rule