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Need a little advice.

Discussion in 'Business Fundamentals' started by born2farm, Jun 10, 2010.

  1. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    Here is my dilema. Starting this year I am going to start plowing commericaly. I already have had a few larger commercial lots ask me to summit a bid for this winter. I plan to set everything up legally this year by first setting my business up as a sole proprietorship as well as getting the necessary insurance. Here is my problem. I will not turn 18 untill Dec 12 so you can see where that will be a problem signing contracts. The business will be set up in one of my parents names untill I turn 18 and then switched over. I have never dealt with contracts before...How much of an issue will I face if I have say my dad sign the contract but then switch the business into my name?

    Thanks
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    First rule of business,get a lawyer to sort it out.
     
  3. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    X2


    It should not be expensive to have a lawyer set things up for you. Perhaps you and your parents could own it jointly until you turn 18. You could also talk to a lawyer/accountant about whether you should be a sole proprietorship, a LLC, LLP, sub chapter S corp. (very popular sort of a mix between sole proprietorship and a C type Corp.) and a C type corp.

    Be a good time to get some help with your contracts as well. A standard boiler plate contract isn't good enough a contract needs to be personalized for your situation. No standard contract can cover all of your needs. SIMA, Sean Adams and a number of other people offer some basic contracts to use as a starting point but you need to have contract designed for you, your business and it's needs and protection. Think about it like a truck, they all build a truck that is a good base to start with, but they all need personalization before they are suited for your individual needs.

    Also a good time to find an insurance agent, accountant and a financial advisor.
     
  4. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    i would be really surprised if you aren't allowed to set up your own buisness at 16yrs old, insurance and everything. But if there needs to be parrental consent, it may just be a letter from your local registry that you need. Spend the $100 dollars at a lawyer and have him walk you through it, but i don't see setting this up and then transfering it to you when you are 18, lots of young people are setting up legitimate buisnesses when they are as young as 14
     
  5. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    I have talked to the secretary of state here in ohio and here is what the email said in response to my question...

    "Dear Mr. Goodman, Since the name registration form, once filed, is a legal document, itmust be signed by a person of legal age, which in Ohio is 18."

    I then asked if I could just set it up in a parents name and then transfer it to my name at the age of 18. Here is that response.

    "Dear Mr. Goodman,



    That is possible. Attached is a copy of Form #534A, Name Registration. The name can be registered by someone over 18 and, after you turn 18, the rights to the name can be assigned to you with the attached Form #524, Name Registration Update.



    Checking Box #1 will register the name as a trade name, which is protected for your sole use throughout the state. Checking Box #2 will register the name as a fictitious name, which doesn’t have that protection for sole use."


    The way it makes it sound...in Ohio I have to be 18 to set up a legal business. Right? Or am I missing somthing...is there any other forms that must be filled out to be a sole proprietor?

    Thanks
     
  6. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    First; take your phone number out of your sig.

    Second; spend the money to go to a lawyer he can get it set up in the way that best benefits you. I'll bet every dollar you spend now will save you two later.
     
  7. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    keeping in mind that i am from Canada, legal age can mean anything, here the legal age of consumption of alcohol is 18 , legal age for driving is 16, legal age for voting is 18, etc, etc. Also here we have a consent form, (never actually used one but i know they exist, it is a form that gives parental consent to you to act on your own behalf, this is how people younger then 18 get married legally. i think you need to further investigate what you are doing, and consult a lawyer.
     
  8. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Basher is giving you good advise. A local lawyer will beat an "internet expert" every time.
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I thought it you heard it on the internet ,it must be true!
     
  10. ajslands

    ajslands 2000 Club Member
    Messages: 2,033

    That's right! That's why everytime I playgerize from wikipedia, I get an A on my paper everytime! :rolleyes:
     
  11. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    :laughing::laughing::laughing:
     
  12. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    Thanks for the input guys. I will be contacting a local lawyer soon. Do I need to look for a lawyer that specializes in business?