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JonathanT12(Newbie)Newbie
8 Nov 2023

Hello, my friends and I are 14 years old and we want to start our own business, specifically an SMMA. My friend will be the owner of the company because his parents will sign our business. (I read about it somewhere but i heard if you want to start a business or become a sole trader at 14 you need a legal guardians permission). After we actually start the business, how will he hire us? Do we have to go through all the super annuation stuff? And will we have to register for a TFN, ABN all of that stuff?

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CatherineATO(Community Support)Community Support
9 Nov 2023

Hey @JonathonT12 & @YEP,


We love your motivation @JonathonT12!


We don't think you'll need to request a 'ruling' for this stuff.

You can start a business if you're under 18years old.

You won't be able to start a P/L company as Directors need to be at least 18 years old.


As you're 14 years old, you will need your folks help to get your TFN.

This means you can sign the application for the TFN, but a parent needs to also sign the application. Once you hit 16, you won't need your parents to co-sign.


Tax rates- Have a read through this page. You may be taxed at a higher rate due to your age, but if what you earn is seen as 'expected income' you may meet the criteria to pay the normal adult tax rate, You'll need to work it out based on your personal scenario.


We don't want to overhwhelm you with too much info, so take a look at the links we've provided, and if any further questions arise, please, let us know!


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YEP(Devotee)Devotee
8 Nov 2023

You are going to need specialised advice here, either go to someone like a tax agent or write to the ATO for a ruling.


The issue here is that your under 18 and there are very specific legislation that deals with minors and if your not careful any and all income earnt may be taxed at the highest rate of income tax, starting at $1. This means you will not have the benefit of a tax free threshold.


You could end up with a very expensive and messy exercise here.

JonathanT12(Newbie)Newbie
9 Nov 2023

Okay thank you. Can you provide me the sources which mention that so i can talk to my friends about it? And also, how do i avoid the expensive issues here?

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Starting an SMMA Business with friends. | ATO Community