| Businesses for kids are cropping up all over. Before | | | | policy. Insurance companies may recommend that you |
| your child actually starts a business, make sure that | | | | purchase separate business insurance to cover your |
| liability issues won't surprise you. No matter what age | | | | youngster's entrepreneurship. |
| you are when you start a business, laws need to be | | | | Failure to purchase adequate insurance could result in |
| followed to avoid any possible problems that might | | | | major property loss for you. |
| arise. | | | | Limited Liability |
| Get in the Zone | | | | Parents may not want to dish out money to form a |
| Local zoning regulations must be followed, especially if | | | | corporation for their child's business. Honestly, your |
| your child's business is based in your home. Check with | | | | 15-year-old daughter's pet sitting business probably |
| city officials to determine if your child's business can | | | | doesn't need to become a corporation. If the business |
| legally operate from your home. If not, your child may | | | | is profitable, you may consider organizing the business |
| need to acquire a permit to operate the business. | | | | as a Limited Liability Company (LLC). Each state has |
| Since your child is under age, you will have to apply for | | | | its own rules governing the establishment of a LLC. |
| any necessary permits on her behalf. | | | | The benefit is that your child has the same personal |
| Failure to comply with local zoning regulations can | | | | liability protection that a corporation offers, but money |
| result in hefty fines. | | | | matters are taxed as a partnership. |
| Insurance Assurance | | | | Prior to starting any new endeavor, parents, along with |
| Ask your insurance agent if your homeowner's policy | | | | their children, should discuss the potential drawbacks, |
| will cover your child's at-home business. Liability | | | | the start-up costs, and positive aspects. Covering all |
| coverage may need to be added to your existing | | | | areas reduces the chance of a liability issue. |