Entrepreneurship

My son communicating with older people on discord he says starting business but s yearsBeing 12 years old does not preclude him from having a business, or having a successful online business. That being said, he shouldnt need to send mon. ey to his online co worrs. So, do what your gut is already saying DO NOT GIVE HIM MONEY FOR THIS. But, you also take a look at the business structure. — If it is obviously a scam, this is a perfect teaching opportunity. Its never too early in life to lea.rn how to recognize when someone else is trying to bilk you out of mon. ey. —If it is an hont but ill coeived venture, thats another teaching opportunity. Show him how to assess a business ventures probability of success. He has no life experience to do this on his own. Its your jo.b as a parent to teach him life ski.lls including this one. —If it is an hont and well coeived venture, he still should not be sending mon. ey to his co worrs. He might be responsible for paying part of the businesss legitimate business expenses, but there should be a formal agreement which he is not old enough to sign or enter into and business accounts which no bank will allow him to initiate without a guardians signature for outlining and handling the mon. ey aspects. If there is a bank account, you need to determine if the account was opened by someone old enough to do so, or if someone pretended to be old enough and opened an online account. Both of these are red flags if the person responsible for paying the bills is soliciting mon. ey from 12 year old children. All of them lead back to DO NOT GIVE HIM MONEY FOR THIS. What if you check it out and it is a viable business opportunity? Then offer to assist him to set up a similar or competing business on his own. If he lacks the ski.lls to run it on his own, you have two choices help him or tell him to acquire the ski.lls first then help him get the ski.lls. Hes obviously interted in running his own business, which should be encouraged. In any case, in most states in the USA, you are responsible for the financial and/or physical damage perpetrated by your child either intentionally or accidentally. Example If your minor kid borrows a car or uses yours and gets into an accident, you are responsible for the damages. Another example If your kid accidentally breaks your neighbors window with a baseball, you are financially responsible for the loss. , there is probably insurance that will cover the costs, but most insurance has deductibles. You would morally, if not legally, be responsible for the uncovered costs. You need to be actively involved so you can determine what the potential liability is for your family. A qution that comes up on Quora many times is a variation of My teenage child is running a successful business online. What should I do about X aspect of this situation? I mention this so you understand this circumstance is not uncommon. In previous times, teenagers running lawn/yard care or babysitting/housecleaning businesses was not uncommon. I knew one young man who started when he was 12 years old with a push mower he bought at a yard sale for $10. He out flyers on all the doors in the neighborhood to find his first customers. By the time he was 16 years old he had 40 lawns he mowed on a weekly basis, a riding mower he pai.d for and serviced himself, an employee, and a pick up truck to drive his equipment to jo.b sites. His parents signed for the business insurance and co owned his bank accounts until he could not legally enter into co.ntracts. He pai.d employment taxes for his employee, filed a tax return and had a ROTH IRA that he later used to help fund his college education. I also currently know a young man who runs an online gaming server. Hes over 18 now, but was only 15 when he started it. At first it was just for his friends, but it expanded. He sold donor ranks and enhancements to the players, maintained the server and provided the administration. moderation and updates for the site himself. It nets about US$2000 per month His server is located in the USA and his revenue is in US$. His players are located all over the world., which is enough to support himself and his family in his country, and provide for him to attend university. The last scenario is probably similar to the one your son is involved in with his co worrs. There are few recurring costs, but the most common expense is the monthly fee to rent space on an commercial game server. If hes part of the management team, he may have committed to paying a portion of the monthly rental fee if the inme from other players doesnt cover the cost each month. If that is the case, it is probably not a viable business, unless it is in its first few months of existence Even if it is DO NOT GIVE HIM MONEY FOR THIS. Instead, refer back to the original paragraphs at the top of this post assess the business model,