Questions about PayPal and businesses owned by a minor

[hansbug]

I have some quick questions about minors and PayPal accounts.

1) Can a minor own a PayPal BUSINESS account that is linked to a standard account?

2) If not, can the minor make a BUSINESS account under the adult's name and link it to the standard PayPal account as long as the adult consents and is aware of this? For example, let's say that two kids want to make a business account with the name DeliciousDrinks for their massive lemonade business. Can they make that business account and link it to MY standard account, as long as I agree to it even if I am not the one explicitly earning the revenue? Would that get hairy with the IRS should the minor earn enough money to file a tax return? 

Thanks for your time 

[DPCreations]

A PayPal member must be at least 18 years old.  That's all.  No other options.

[Whac-A-Mole]

I think she means can they use her Paypal account to accept payments for lemon drink?

if customers after drinking the lemon drink decide to file dispute of item not as described,it would hit your account and make you look bad.

they can always appoint you as the treasurer and use your paypal account to collect sales $$.

as for IRS,if 200 transactions and $20k is collected,Paypal will send  you a 1099 to report your business.

it is your business as it is your Paypal account under your SS number 

[hansbug]

Basically, can a minor use an official paypal account owned by an adult? 

[Whac-A-Mole]

what do you mean by use?

like pretending he is you and log on and send and receive money?

[hansbug]

No, let's say I make my son his own PayPal business account because he owns a business and I give him explicit permission to receive payments using the business PayPal account, but the account is still filed under my name even though I am not actually in charge of the business. 

[Whac-A-Mole]

either you allow your son t o acept payment with your Paypal account OR you set him up with his own paypal account,since he is not 18,Paypal will shut it down and restrict his $$ for 180 days.

Or like I suggest,appoint your self the treasurer and accept payment for him,as far as IRS is concerned,you own the business.

any more question,go talk to your accountant 

[sharpiemarker]

Google is your friend.  I searched for "minors with their own business" and there is a wealth of information.  

https://www.sba.gov/blogs/6-things-you-need-know-about-starting-business-minor

In general though, for PayPal, you can open a business PayPal account under your name operating under a business name. But file and get a EIN and designate a company type (sole proprietor, Corp, LLC, etc) with IRS first.  Then the money will go under the business name for the minors in trust and you handle the administration and transactions issues for them.  They do the actual selling.  It is doable but research and speaking with atty and accountant def recommended.  There was one little girl who started her own brand of lemonade and got distribution in whole foods, I believe the story was.

[DPCreations]

@hansbug

The owner of the account must be a PERSON who is at least 18 years old.

Can another person use your account?  I suppose so if you give that person your account password and also access to your bank account and credit cards.  That would still be fraudulent use of your account.

So back to starting point:  the OWNER  of the account must be a PERSON and must be AT LEAST 18 YEARS OLD.

The owner of the account is responsible for all funds in the account and all debts incurred by the account.

[dsetlow]

It's now clear that an account owner must be 18 years old, thank you for the message. If I may try to cut through the clutter, though, the larger question is this: does Paypal offer any sort of solution for a person under 18 years old to have parent/guardian supervised way of managing and spending money, such as allowance or other income.

Thanks!

Sincerely,

Darren