Dropshipping is a highly sought-after activity among young people, with many wondering if minors can also participate due to its apparent ease of entry. Nowadays, it’s common to see 15-year-olds starting a business, is it the same with dropshipping?
If the answer is “Yes,” there would indeed be many formalities, such as parental consent and other necessary criteria to fulfill. This guide becomes the perfect place to gather all the information needed to understand the different levels of consent required for a minor to engage in dropshipping without worry. Let’s focus on all the details that allow a minor to do dropshipping.
What is the ideal age to start dropshipping?
As a general rule, it is essential to be of legal age to start dropshipping independently and legally. Many parents wish to support their children in the e-commerce field. However, at 18, you will be able to enter into contracts with clients or companies within dropshipping. You must also have a professional bank account in your name to legally operate in this booming industry.
However, it is allowed for young people to start dropshipping at a younger age. But the minimum age is 13. To start with a well-established dropshipping store, having a good niche is essential. Thus, you can have a dropshipping store, but with a parental guardian to help create certain parts of the business with their credentials.
It is only at the age of 18 that the entire business can officially be under your name, and you will be eligible for payment processes like PayPal, which is generally the most used payment method by clients. It is more practical for online purchases.
Can you start dropshipping at 16 years old?
If you’re wondering, it is indeed possible to start dropshipping at 16 with a good supplier. The only thing you need is to have an adult accompany you in the legal aspects, such as registering for payment processes like Stripe, PayPal, and others.
Before having an ideal dropshipping store ready to conquer the highly competitive market, it is important to have a professional bank account to better handle customer orders. This can be challenging since banks require a minimum legal age of 18. In such cases, you will inevitably need help to get past this step of creating a perfect dropshipping store to achieve your e-commerce vision.
For instance, to have a Stripe account, it is very practical. You must be at least 13 years old, but a guardian must assume the role of account owner until you reach the appropriate age. Beyond this, are there any additional conditions to have a dropshipping business between the ages of 13 and 16? Children in this age range are considered minors; there are no additional conditions to fulfill, except having a legal guardian to handle the legal aspects in each country.
What can a minor do in dropshipping?
If you are a minor looking to start dropshipping, the business model is simple. The only thing you need is the consent and assistance of a parent to accomplish the necessary legal aspects. Here are some things to know before launching the process of creating a dropshipping store if you don’t have a clear idea yet:
Seek parental assistance
Before successfully creating a dropshipping store, it is essential to have the consent and help of a close parent or legal guardian. This is due to existing rules concerning the creation of a business, including contract signing and the use of banking services.
For example, Shopify requires a minimum age of 18 to create and use a dropshipping store due to the legal conditions in place. This allows you to legally operate your dropshipping platform without fear. But if you are determined to open a Shopify store, you will need to use a parent as an intermediary to create the Shopify platform in their name.
Consider legal restrictions
In the field of dropshipping, it is essential to create a legal business to comply with the laws and regulations in the country where you conduct your online commerce activities. Generally, you will need to register your business, collect and report sales taxes, and ensure compliance with consumer protection laws. This includes detailed product descriptions, as well as managing returns and refunds. It is also crucial to comply with intellectual property laws, especially for branded products. Finally, privacy laws must be respected when handling your customers’ data.
Managing this series of tasks represents a complex business activity, difficult for a minor to handle. In the United States, for instance, it is possible to create a dropshipping store as an LLC, but the minimum age requirement is 18. Minors, however, must have parental assistance to follow each step of this business model.
Do banks allow teenagers to open an account for dropshipping?
Having a bank account is essential when launching an e-commerce store. Today, most banks in the United States offer the possibility for teenagers to create a specialized account with relaxed requirements and fees. Generally, creating a bank account often requires a parent or guardian to be a co-owner of the account.
What is the minimum age to use and accept PayPal?
PayPal is a widely used payment method in e-commerce for customers to make payments after purchases. To facilitate payments for your customers, it is essential to link a PayPal account to your dropshipping store.
The minimum age to use and accept PayPal payments is 18 years old. It should be noted that if you open a PayPal account underage, your account may be blocked or closed for violating registration rules.
Which e-commerce platforms allow minors to create a store?
Today, there are numerous platforms for suppliers, making online commerce easier. Thus, you can create your e-commerce store even if you are not yet 18 years old.
Here are some platforms that may accept you despite your age:
Wix
Wix is a website builder with e-commerce features, accessible to young people aged 13 to 16. You must reside in one of the European Union countries to benefit from this best option for sustainable dropshipping with Wix.
Squarespace
This is also a popular website builder with dropshipping features similar to Wix. This e-commerce platform is accessible to teenagers aged at least 16.
Big Cartel
This platform is specifically designed for artists and creators who want to start selling online. Even if you are not yet of legal age, you can register, but a parent or legal guardian must provide proof of consent and address legal aspects for creating an e-commerce business.
Do minors have to pay taxes on a dropshipping store?
In the dropshipping field, tax obligations often depend on the dropshipper’s age. As a minor, managing an online store can seem like a lucrative activity, but it is crucial to understand the resulting tax responsibilities.
Income generated from selling products through an online supplier must be declared, regardless of the store owner’s age. If a minor regularly generates income from this commercial activity, they are generally required to pay taxes, just like an adult. Therefore, age does not change the requirement to manage and pay taxes for a dropshipping business.
However, in some cases, parents or guardians may be responsible for tax declarations. It is important to consult a tax expert to ensure compliance with legal obligations related to this business model.
Is a business license necessary before starting dropshipping?
Before starting dropshipping, it is crucial to understand the legal requirements, including the need for a business license. Dropshipping, as an e-commerce model, involves selling products online without holding inventory. While this commerce may seem simple, it is essential to comply with local and national regulations.
In many countries, a business license is required to operate an online store, even if you do not have a physical shop. This license legitimizes your business and allows you to establish formal relationships with suppliers and wholesalers. Additionally, a business license offers legal protection in case of disputes with a customer or supplier, which is essential for any business.
The cost of this license varies depending on the jurisdiction, but it is an essential step to ensure your business complies with market laws. Without this license, you risk facing legal issues that could affect your brand’s growth. It is therefore recommended to consult a legal advisor to ensure that your business practices comply with all regulations before placing your first online order.
Where can a dropshipping business be registered in the USA?
Registering a dropshipping business in the USA is a key step to legitimizing your commercial activity. For this, you have several options, including Nevada and Wyoming, which are among the most popular states for registering an online business with the “LLC” status.
- Asset Protection: These states offer strong laws on protecting your personal assets against business liabilities and lawsuits.
- Privacy: Most states offer anonymity to dropshipping business owners on the personal information of registered members.
- Tax Benefits: These states offer tax advantages for e-commerce businesses, leading to tax savings for your dropshipping business.
- Flexible Structures: Regularly registered businesses benefit from various management styles and ownership structures. An advantage for easily managing a dropshipping store without hassle.
These states offer advantages such as reduced taxes and flexibility for international dropshippers. By choosing the right state to register your business, you can set up an online store and start selling products to your customers without legal complications.
Once your business is registered, you can work with suppliers and wholesalers, manage your orders, and grow your brand in the American market. The right choice of state can influence the success of your business in the e-commerce sector.
Conclusion
Generally, teenagers aged 13 can start a dropshipping store as long as they have a parent or legal guardian to complete the legal documents on their behalf for the time being. Learning and adapting are the keys to success in dropshipping. But no matter your age, you can easily succeed in the e-commerce world.
The ideal age to start dropshipping is not strictly defined, but it is generally recommended to wait until you are at least 18 years old to create an online store. At this age, you are legally able to sign contracts with suppliers, manage orders, and handle the financial aspects of your business. Dropshipping requires a certain level of maturity to understand the market, choose an appropriate niche, and manage relationships with customers and wholesalers. Even if you are younger, it is possible to start with the help of a legal guardian, but the autonomous management of this business activity requires the responsibility that adulthood naturally brings. Therefore, 18 years old is the ideal age to launch a dropshipping business with seriousness and success.