Who pays taxes if the business is under a parent's name but income goes to a minor's account?

Lillyb
Tourist
10 0 1

Hello! I am under 18 and looking to start a Shopify! 

The taxes can not mess with my parents taxes, and I will need to pay the myself, so, I was wondering if the solution would work.

If the owner name is under one of my parents, and the bank account ( where the income will go ) is under my name, who would pay taxes?

 

Thanks, 

 

 

LB

Replies 4 (4)

Moira
Shopify Staff
2053 224 326

Hey @Lillyb,

 

As per the "Account Terms" section of the Shopify Terms of Service, all persons using Shopify must be at least 18 years of age or "the age of majority in the jurisdiction where you reside". If you are under 18, I would suggest having a parent or guardian open a store under their name that you can help with and work on.

 

While I can't give direct tax advice, as we're not tax experts, I can give you some general information to help guide you in the right direction. If you are based in the United States, then Shopify is required to report any income to the IRS. As you're a minor, one of your parents would need to be listed on the Shopify Payments account along with being the Account Owner, which would result in income being reported as an SSN is required.

 

I would recommend consulting a tax professional if you are unsure of your obligations.

Moira | Social Care @ Shopify
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Lillyb
Tourist
10 0 1

If I use my ssn, or buisness license/tax number, will the tax reside under my name?

Moira
Shopify Staff
2053 224 326

@Lillyb 

 

As you're a minor, one of your parents would need to be listed on the Shopify Payments account (with their SSN) along with being the Account Owner. 

Once you turn 18 you will be able to relinquish account owner rights and provide your own tax number. 

Moira | Social Care @ Shopify
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- Was your question answered? Mark it as an Accepted Solution
- To learn more visit the Shopify Help Center or the Shopify Blog

Lillyb
Tourist
10 0 1

I was told that the payments account only needs to have their name, and CC, and taxes wouldn’t be charged through there.

 

is there anyways for me to start a shop without my parents paying taxes for me?