Fourteen year old legal status & Business Banking

[ewan]

I am currently in the process of setting up a small business. I have found a business bank account which I think is most suitable (namely, the business builder account from Alliance and Leicester) but have run into many issues surrounding the fact that I am fourteen.

To cut a long story short, I'm looking for an account to operate small business (projected turnover £1600 in first year). It is basically just an online store, selling imported and wholesale-sourced goods, which I can run alongside school with little hassle. The reason why I'm after a business account is that it can be in the name of the business, and is far easier to use in conjunction with international business payment methods (e.g. SWIFT).

The Alliance and Leicester account that I have been looking at, along with probably all business accounts ask for the legal status of the business. The key problem with registering as a sole trader is that, being fourteen, I obviously cannot set-up the account myself, and cannot register as self-employed myself (what a hassle for such a small operation!). My dad would have to set-up the account under his name and apply for me to be a signatory to the account - able to access the money. He is employed full-time and clearly does not want to have the extra hassle of also being registered as self-employed (which would be quite a contradiction of terms...). Actually, looking into the government's texts, it looks like it is nearly impossible to be both employed and self employed!

I need to find a solution to this big jumble of problems, and may have to resort to asking other banks if I can set up a normal account, fully accessible by myself, under the name of the business. I do need an account which can send payments via SWIFT though, as it is the method through which I will pay some of my suppliers in the far east.

[Evan]

I understand your frustration. I had my first business and even personal checking account when I was 15. Many banks will accept an adult (over 18) as the primary signer, with you as a secondary signer. If they don't, look for another bank because they do exist.

I'm not sure the whole process overseas for getting your business going, but again most set the age at 18 because you cannot get into a legally binding contract before that age. (Same reason why eBay is limited to 18+ year olds, though that doesn't mean minors get by.) I was, legally, able to form a partnership for a year with my father and I was 99% responsible for the income and loss, which meant he was responsible for that mere 1%. (My fathers CPA was furious!)

Good luck sorting through these problems, I hope you'll be able to do something similar to what I did.

[Michael Dick]

You being 14. Good luck! I like to see young entrepreneunuers like myself in action!