I’m under 18 and starting my Shopify store, I just got to the stage of setting up Shopify payments and I am under 18 so I have to use my parents as the owner, do they have to then report any income made through this company to the ATO(Australian Taxation Office), (this will make it a lot more complicated to convince my parents to let me do this) or because it all technically goes straight to me are they exempt, as they technically made no profit/income because they had to pay a “wage” to me?
I have also put myself down as the owner when I set the store up, will I have to go back and change thsi as I didn’t realise you had to be over 18 just to start it.
Starting a Shopify store is an exciting venture, but there are some legal and financial considerations to keep in mind, especially if you’re under 18.
Firstly, if your parents are listed as the owners of the Shopify store, any income generated from the business would technically be considered their income. This means they may need to report this income to the Australian Taxation Office (ATO) and pay taxes on it. However, if they’re just facilitating the setup and operation of the store on your behalf, and all the income generated is essentially going to you, it could be a bit more complicated.
One way to approach this situation is to have a clear agreement with your parents about how the income from the store will be handled. You could discuss setting up a formal arrangement where they act as trustees or guardians of the business on your behalf until you turn 18. This could involve them managing the finances and reporting requirements until you’re legally able to do so yourself.
Regarding your ownership status on Shopify, it’s essential to comply with their terms of service, which typically require users to be over 18. You may need to update the ownership information on your store to reflect the legal requirements.
Ultimately, it’s crucial to consult with a legal or financial advisor who can provide personalized guidance based on your specific situation and local regulations. They can help you navigate the complexities of starting a business while under 18 and ensure everything is set up correctly and legally.
In simple terms, you’ll want to discuss with your parents how income from the store will be managed and reported to the ATO if necessary. You may also need to update your ownership information on Shopify to comply with their rules. And don’t hesitate to seek professional advice to ensure everything is done correctly.
Thank you for reaching out and posting this question.
Due to varying regulations between countries and states, we’re unable to provide this type of tax advice. However, the minimum age requirements can be found in the Shopify Terms of Service. That being said, as suggested by @ToffyDrumz9 , we’d recommend consulting a local tax advisor so that you can have the most accurate information to move forward with your business.
If you have any other questions, then don’t hesitate to let us know.