Published on 12/10/2017 by Any Business.Com.Au

Our guide for aspiring young business owners

If you've got an entrepreneurial spirit, but you're a little younger than the typical age of a business owner, don't worry - you can still start a business as a minor with some proper planning and information.

Generally, there are no age restrictions for starting a business. However, there are a few things that need to be considered more carefully if you're a minor.

Business structure

One of the first things you'll need to consider is what kind of structure your business will use.

The most common business structures are:

• sole trader

• partnership

• company

• trust

A sole trader business structure is the simplest business to set up because there are less legal and tax obligations.

Company business structures are a more complex structure because they're governed by a board of directors. You need to be at least 18 years of age to be a director of a company.

Getting an Australian Business Number (ABN)

Once you've decided on your business's structure, it's a good idea to obtain an ABN. An ABN is the number you'll use when dealing with other businesses and the government. Although anyone can apply for an ABN (regardless of how old you are), not everyone is entitled to an ABN - it's dependent on your business activities.

Tax File Number (TFN)

You'll also need a TFN to do business. You can apply for a TFN at any age, however if you are:

• 12 years old or younger - your parent or guardian must sign on your behalf

• between 13 and 15 years old - either you or your parent/guardian can sign the form

• 16 years old or older - you must sign the form yourself.

If you decide to start your business as a sole trader business structure, you can use your own personal TFN, but for all other business structures, you'll need a specific TFN for the business.

Working hours for minors

Although you'll be considered 'self-employed' as a minor, there are still restrictions on what hours minors can work.

The laws slightly vary in each state and territory, but the main requirements are:

• no working during school hours

• no work after 10:00pm on a school night.

In some states, you may require adult supervision while you work if you're under a certain age.

Employing people

After your business is up and running, you might want to employ people to help keep your business going.

If you employ people older than you, your staff members may need to complete a permit or check to be eligible to work with a minor. The requirements for these types of checks vary in each state and territory, so it's important to check with your relevant state government.

Programmes and grants for young people

• There are a number of grants and assistance tools available to your business people - go to the business.gov.au website for for potential programs and grants to support your business venture.

Licence and registration

When starting a business it's your responsibility to ensure that your business is operating legally by having the right licences and registrations. Click here for more information on industry specific licences and permits you need to run your business.

Finance and bookkeeping

In business, it's important to have strong financial skills so you can keep track of your earnings and spending habits.

Here are some resources to help you strengthen your financial skills before starting your business:

• Be MoneySmart - the Australian Securities and Investments Commission (ASIC) has developed a free online course designed to help young people understand and take control of their finances.

• Business finances - a useful resource with information about seeking and managing finance, bookkeeping and sources of finance.

Other tips for starting a business

If you're serious about starting a business as a minor, it's important to understand your obligations and responsibilities.

Click here for additional resources help you on your way.

AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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