Can minors run an online store without affecting parent's taxes?

Lillyb
Tourist
10 0 1

Hi. So I am under 18 and am looking to start a Shopify. I don’t want the taxes messing with my parents tax information, at what point on Shopify do you start paying taxes? ( like is there a certain amount earned or..?). 

also, on top of that, from what I have heard, you just need the parents name as the owner name, and the rest of the information can be the minors?

 

is this true?

 

I need a response kinda quick! Thank you!

Replies 5 (5)

Skye
Shopify Staff
1071 97 195

Hi, @Lillyb.

 

Welcome to Shopify, and congratulations on this business venture at a young age!

 

Because you are a minor, all account owner information must be your parents. When you turn 18, they can transfer the ownership of the store over to you, and you can update the information at that time. 

 

When it comes to taxes, this is not something controlled by Shopify, and is determined by your regional tax laws. Shopify does not remit taxes on your behalf, you are responsible for filing your income tax. For example, in the US, In 2021 the minimum for single filing status if under age 65 is $12,550. Therefore, you should reach out to a local tax professional to understand what your obligations are.

 

Have you opened the trial store yet? I would love to hear more about your business to see how else we can assist! My best piece of advice would be to use the getting started checklist to ensure you have completed every necessary step.

Skye | Social Care @ Shopify
- Was my reply helpful? Click Like to let me know!
- 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

Wouldn’t, if the account is in my parents name, have the income under there name and therefore mess with their taxes?

 

or, could I put the source of income, (where order payments will be received) as my bank account?

 

thanks again. Lb

Skye
Shopify Staff
1071 97 195

Hi, @Lillyb.

 

While I would absolutely love to provide an answer for that question I am unable to do so. Taxes and your legal obligations in your specific region is very complex, thus we have to leave those questions up to tax professionals.

 

I recommend speaking with your parents on what they are comfortable doing to work with you, as well as speaking with a tax professional local to you.

Skye | Social Care @ Shopify
- Was my reply helpful? Click Like to let me know!
- 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 will talk to my town, what people should I reach out too? Town hall, tax professional?

 

I’ll let you know what they say and if I have anymore questions. But just to

clarify, the source of income can be my bank account.

 

and as I’ve read, the credit card must be a parents for monthly payments and if the transaction fees are needed or sales tax is not met, but taxes would not be on that card correct? If they would have taxes go through it can I use my own debit card?

Skye
Shopify Staff
1071 97 195

Hi, @Lillyb.

 

That's correct, the payouts can go to your bank account. 

When it comes to taxes, these are not remitted by Shopify, and are done so indepedently by you/your parents, so will not be charged to the credit card on file. 

Skye | Social Care @ Shopify
- Was my reply helpful? Click Like to let me know!
- Was your question answered? Mark it as an Accepted Solution
- To learn more visit the Shopify Help Center or the Shopify Blog