Choose the Right Business Structure and Register Your Teen Business
There are five main business structures you can have in the U.S., and it’s important to choose the right one. We’ve shared your options below. They are:
This is the "default" business structure and is what your teen business will be if you decide not to create a more formal structure. If you’ve just got a very small venture that’s only earning a few dollars, this business structure is fine — as long as you understand that it doesn’t provide any legal protections against liability.
This is a type of business that is formed when two or more people work together without creating a more formal business entity. Like a sole proprietorship, it may not give you all the protections your teen business needs. Also, it may be difficult to get a long-term commitment from another teenager or young person to form a partnership with you.
The most common type of business entity, an LLC is fast, simple and inexpensive to set up and maintain. It protects your personal finances and assets — if you’re serious about your teen business and want to see it grow, this is an ideal choice.
This is a more complex type of business and isn't generally recommended for smaller organizations, like a teen business.
These are the largest and most complex types of businesses and are typically far more than the average teen entrepreneur will need.
For more information on the advantages and disadvantages of different types of businesses, please see our in-depth guide. If you’ve still got questions, we’ve answered them to help you choose the right business structure for your teen business.
In some cases, our recommendation for a teen business would be to create an LLC. We’ve got a complete guide to everything you need to do, and we can even set one up for your business. LLC formation does vary from state to state, but we’ve got you covered, wherever you are.Start Your Business with Us, Today!