Entrepreneurship & Small Business

Can a minor run a corporation?

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  • Sep 18th, 2008 2:14 pm
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Sr. Member
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Jun 24, 2008
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Can a minor run a corporation?

My friend is giving his younger brother a small >$30000 clothing and textiles business to take over and run.

Hes making his brother the sole owner (100% shares transfered to him) and his brother will become the CEO.

My friend is being forced by his dad to do this, his dad wants to test his younger son to see if he can manage a business.

Thing is, the boy in question is only 16.

This is a legal corporation and everything, so I was just wondering if it is illegal for a minor to run a business?

Me and my buddy are trying to find out everything we can on the internet but so far we have had no luck. Theres no mention on the internet on who can run a corporation..

We can't speak to a lawyer because were out of the country.. So I thought I'd ask RFD. Any and all help would be appreciated.

Oh and my friend isn't opposed to his brother taking over the business, we just want to make sure its legal.
5 replies
Deal Expert
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Aug 22, 2003
15540 posts
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Niagara Falls
Well knowing that minors cannot enter in legally binding or enforceable contracts, my answer would be a flat out no.
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Jun 24, 2008
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CSK'sMom wrote: Well knowing that minors cannot enter in legally binding or enforceable contracts, my answer would be a flat out no.
But what if they had parents permission?

Anyways he might not be able to run it, but he would be the owner, no?
Deal Expert
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Aug 22, 2003
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Niagara Falls
Parent's permission doesn't apply to minors and contracts. IMO, logically he can't be the owner because of the contract issue. Very similar the other thread here asking about hiring their son on a contract position for their business. It can't be done because of the contract issue, but he can be hired as a regular employee. As CEO, logically that would mean entering into contracts on behalf of the corporation which he can't do as a minor...
Deal Addict
Dec 18, 2007
1258 posts
26 upvotes
I would think a minor could own a corporation by way of trust.
Sr. Member
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Jun 24, 2008
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Alright thanks guys!

I'll break the good news to my friend, I'm sure he'll be happy hes not out 30k, hehehe..

Anyways you got me dealon, I suck at researching, and I'm also a cheap ass whos not willing to pay $50 for a phone call to a lawyer. Don't hate me please. :cheesygri

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