You do not need to be 18, have savings, or file paperwork to start a business. You need something people will pay for and a way to reach them. Most teen businesses start as one person selling a skill or a product to a few customers, and grow from there. This guide covers how to get going, plus the money and legal details where being a minor actually matters.
Step 1: Pick an idea you can sell this month
The fastest businesses to start sell something you can already do or make. A few categories that work well for teenagers:
- Services: tutoring, lawn care, pet sitting, babysitting, cleaning, moving help
- Digital services: website building, video editing, graphic design, social media management for local businesses
- Products: handmade goods, art prints, baked goods (check your state’s food sale rules), custom clothing
- Resale: buying underpriced items at thrift stores or garage sales and selling them online
- Software: an app, a template, a browser extension, or a digital tool
Pick one where you can name five people who might pay you. If you cannot, pick something else or narrow the customer. “Small businesses” is too broad. “Restaurants on Main Street with outdated websites” is a list you can walk.
Step 2: Test before you spend
Before you buy inventory or build a website, find out if anyone will pay.
- Ask directly. Message ten potential customers and offer the service at a specific price.
- Take preorders. If it is a product, collect interest or orders before you make a big batch.
- Do one job. Mow one lawn, build one website, sell ten shirts. You will learn more from one real sale than from a month of planning.
If no one bites, change the price, the offer, or the customer, and test again. This is normal. Most businesses look different from their first idea.
Step 3: Set your price
Teenagers usually underprice. Look up what others charge for similar work in your area, then pick a price you can defend. Factor in:
- What your materials or tools cost
- How many hours each job takes
- What you would earn per hour at a regular job
It is fine to start a little lower to get early customers and reviews, then raise your price once you are in demand.
Step 4: Get your first customers
Your first customers almost always come from people you already know or can reach directly.
- Tell family, neighbors, teachers, and family friends
- Post in local community groups (with a parent’s okay)
- Walk into local businesses and offer something specific
- Ask every happy customer for a referral and a review
Do excellent work for the first ten customers. Word of mouth from them will be worth more than any ad.
Step 5: Handle money the right way
Bank accounts and payments
Many banks offer teen checking accounts that a parent or guardian opens with you. Keep business money separate from your personal spending, even if it is just a second account or a dedicated savings account.
Many payment platforms require account holders to be 18 or require a parent’s involvement, so read the terms before you sign up. Often a parent sets up the account, or you use a teen account linked to theirs.
Track every dollar
Use a simple spreadsheet: date, what you sold, what you earned, what you spent, and receipts. This takes five minutes a week and saves real headaches at tax time.
Taxes
Yes, teenagers pay taxes on business income. According to the IRS, you have to file an income tax return if your net earnings from self-employment were $400 or more, and self-employed people generally owe self-employment tax in addition to income tax. “Net earnings” means what you made after business expenses, which is another reason to track expenses.
Talk to a parent about this early. If they use a tax preparer, ask them to bring your records. Your state may also have its own income tax and sales tax rules.
Step 6: Understand the legal basics for minors
You can run a small business as a sole proprietor without forming anything. That just means you and the business are the same for legal and tax purposes. The SBA’s guide to business structures explains the options when you are ready to formalize.
A few things work differently when you are under 18:
- Contracts. In most states, contracts signed by minors can be canceled by the minor. That protects you, but it also makes some businesses and platforms hesitant to sign agreements with you directly. A parent may need to co-sign leases, supplier agreements, or platform terms.
- Forming an LLC. State rules on minors forming or managing an LLC vary. Many teens wait, or have a parent involved in the filing. For most small teen businesses, an LLC is not necessary at the start.
- Licenses and permits. Some cities and counties require a business license, and some activities (selling food, for example) have their own rules. Check your city or county website.
- Sales tax. If you sell physical products, your state may require you to collect sales tax. Check your state revenue department’s website.
- EIN. You usually do not need an Employer Identification Number as a solo sole proprietor with no employees, though some banks or platforms ask for one. The IRS EIN page explains who needs one.
When in doubt, ask a parent to call your local Small Business Development Center or SCORE chapter. Both offer free advice and are listed on SBA.gov.
Step 7: Grow without burning out
Once you have steady customers, you can grow in a few ways:
- Raise prices for new customers
- Productize: turn a custom service into a standard package
- Hire friends to help with overflow (and ask a parent about the rules for paying people)
- Build a simple website with your services, prices, and reviews
- Find mentors who have built businesses in your field
Mentors and peers matter more than most teenage founders expect. College entrepreneurship clubs, local business owners, and programs like Venn, which connects high schoolers who are building things with college clubs and companies in their field, can help you avoid mistakes others already made.
Keep your schoolwork and sleep intact. A business you can sustain for two years beats one that burns out in two months.
Business, nonprofit, or project?
If your idea is more about helping people than making money, consider starting a nonprofit instead. If you want to build with classmates, start a club in high school around it. And if you are still choosing, browse our passion project ideas.
FAQ
Can a 15-year-old start a business?
Yes. You can start a simple business, like tutoring, reselling, or freelance design, at any age. You may need a parent’s help for bank accounts, payment platforms, contracts, or forming an LLC, depending on your state and the services you use.
Do teenagers have to pay taxes on business income?
Often, yes. The IRS says you must file a return if your net earnings from self-employment are $400 or more, and you may owe self-employment tax. Keep records of income and expenses and talk to a parent or tax professional.
Do I need an LLC to start a business as a teenager?
No. Most teen businesses start as sole proprietorships with no formal filing. An LLC can make sense later if you have significant revenue, liability risks, or partners, but rules for minors vary by state.
What is the easiest business to start as a teenager?
Service businesses that use skills you already have, such as tutoring, pet care, lawn care, or digital services like video editing or web design. They need little upfront money and you can get your first customer this week.
How can a teenager make money online?
Freelance digital services for local businesses, selling products or art online, reselling, or building digital products like templates. Check each platform’s age rules, since many require users to be 18 or have parental involvement.
Get help building it
If you are already running a business or startup, apply to Venn. It is free, runs seasons, and picks a small batch of high school and college builders to connect with college clubs and companies in their field. Apply here.