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Can A Minor Own An LLC In Texas? Guideline 2024

Max Smith

Reading Time: 5 minutes

If you are a young entrepreneur or want to engage your kid directly in the business, getting an LLC might be a part of your plan. Before that, you must know the answer to “can a minor own an LLC in Texas?”

The answer is No; Texas does not allow kids to own an LLC directly. Texas ensures that business is conducted legally and that the members have enough knowledge to operate it in Texas. However, you have other options through which you can engage your kid in the business.

Stick with this article, and I can guide you through the ins and outs of this topic. After all, you should not compromise with your business. 

The Texas Secretary of State has a specific business organization code. This instructs anyone who wants to be the owner, officer, or director should be an adult. LLC is a legal business entity to protect your personal assets from potential business debt crises or losses.

Can A Minor Be A Member Of An LLC?

Starting an LLC and owning an LLC is different. 

LLC owners are called their legal members. If you are underage and own a business, you can still be a member of an LLC. However, there are a few things to consider. 

Texas has special laws and regulations to protect minors from contractual issues. Also, minor LLC owners should have legal guardians to secure. For that, anyone from the minor’s family will be accepted. It can be the father/ mother or siblings. 

The guardian member had to sign and file legal filings on behalf of the minor member. The adult should be legally responsible for the LLC required paperwork until the minor turns into an adult according to the Texas legal age of forming an LLC.

What is The Legal Age For Owning An LLC in Texas?

In Texas, an adult citizen should be at the age of 18. Anyone before 18, can hold business ownership there but for an LLC, the applicant has to be 17. 

However, one under the legal age will get to start a business. But they can not go for any legal help or own legal identity. 

Things You Can Do Instead

It is understandable if you really want to engage your kid in the LLC. Texas is an incredible state that helps you out with the cheapest and most flexible LLC formation. So, it got your back here as well. There are other ideal options you can consider.

Join Them Into Your Existing LLC

If your family has a joint business and you want to include your kid. The minor sibling just makes your operating agreement according to that. The adults of your family will hold the ownership of your business and LLC. And, the minor can join as a passive member of the LLC. Once the minor turns of a legal age you can transfer the ownership. You should know how to transfer LLC ownership in Texas.

Select Member Managed LLC

The member management structure of LLC is available to make your kid a passive LLC member. This also requires writing an article of organization and operating agreement regarding the minor member inclusion factor. 

In this structure, the managers are tasked with overseeing the company’s operations, finances, and strategic planning. They are responsible for making key business decisions, managing employees, and ensuring the overall success and growth of the business.

Legal Requirements to Consider for Teenage Entrepreneurs

Teenage entrepreneurship is comparatively more complicated than regular entrepreneurship. You have to maintain a few things regarding laws. 

The teenager must have enough ideas about taxation. He/ she should have to ride if the payment rules are followed correctly. It does not matter who is completing the payments, the legally aged members are required it to be rechecked. At least, a true LLC will require you to sign it before submission.

Young entrepreneurs should hire a legal expert to govern the activities of the business and LLC. Also, anyone from the guardian members who has enough idea about operating an LLC can take care of these things.

You should consider filing a statement of authority. This will give you legal authority according to Texas laws through this approval. This will cost you around $750. 

What Is The Process For Minors Becoming LLC Members?

The process for a minor to become a member of an LLC can vary depending on the state and the specific circumstances. However, I can provide you with a general overview of the process.

Legal Representation

Since minors are generally considered incapable of entering into contracts, they typically require legal representation. A parent or guardian would act as the minor’s legal representative throughout the process.

Management And Control

The parent or guardian would be responsible for managing and controlling the LLC until the minor reaches the age of majority. This includes making decisions, entering into contracts, and handling day-to-day operations.

Formation of the LLC

An adult, such as a parent or guardian, would typically form the LLC on behalf of the minor. This involves selecting a business name, and banking account, filing the articles of organization, statement of authority, and others. To complete all these, you need to contact the appropriate state agency and pay any required fees.

Operating Agreement

The LLC would need to have an operating agreement that outlines the rights, responsibilities, and obligations of the minor member. To know about the exact procedure you should check out how to get an LLC in Texas.

Conclusion​

Texas opts for safe and secured LLC formation services. Minor owning an LLC could be a challenging decision. Texas has legal regulations to join any underage member to an LLC. It is to keep the business secure and maintain transparency. If you want to join a business below legal age, contact professionals.

Key Points

    • Minors can not own any legal business entity as an LLC in Texas
    • They have to be at least 18 to have complete ownership or form an LLC themselves.
    • Minors can be members questions
    • Without being the owner.
    • They must have legal support from guardian/ adult members to hold the responsibilities of the LLC.
    • One must go through the legal procedures consciously and file the required documents before taking any step forward.

Frequently Asked Questions

Can minors have a lawyer to start and run an LLC in Texas?

A minor can have a lawyer act on their behalf or serve as a manager or member of the LLC. The lawyer can help guide the minor through the process and make sure that all legal requirements are met.

Can I start my own business at 16 in Texas?

Yes, Texas Doesn’t have any legal restrictions on age requirements for being an owner or Director or LLC however, if your business opts to get any entity or certification, that might cause issues with age.

Do you need an attorney while filing an LLC in Texas?

It is not a must to have an attorney for Texas LLC. Still, this is a recommended procedure. entrepreneurs can guide you with legal paperwork and grow your business safely as well as faster.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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