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

Accounting & Taxes

Topic summary

Minor wants to open a Shopify store without affecting a parent’s taxes and asks if using a parent as account owner but routing payouts to the minor’s bank account would shift tax liability.

Key facts and policy:

  • Shopify requires users to be 18+ (age of majority). A parent/guardian must be the Account Owner for a minor.
  • In the U.S., Shopify reports income to the IRS (Internal Revenue Service). Shopify Payments requires an SSN (Social Security Number) tied to the Account Owner.
  • As a minor, you cannot use your own SSN/tax number for Shopify Payments; a parent’s SSN must be listed. Once 18, you can take over ownership and provide your own tax number.

Implications:

  • Income reported via Shopify Payments would be associated with the parent’s SSN, even if payouts go to the minor’s bank account.
  • There is no workaround offered to have taxes solely under the minor’s name while under 18.

Next steps and status:

  • Consult a tax professional for specific obligations and filing options.
  • No alternative solution was provided; the issue remains constrained by Shopify’s age policy until the minor turns 18.
Summarized with AI on February 14. AI used: gpt-5.
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

2

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.

3

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

4

@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.

5

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?

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