To start a business at 16, pick a legal structure, get consent where required, and use an adult for banking and contracts.
Ready to turn skills into cash? This guide shows how a 16-year-old can set up, stay compliant, and land first paying customers. You’ll see what permission you need, how money flows, and where teens hit roadblocks. The steps are clear, the tools are light, and every move builds confidence.
How To Start A Business At 16: Step-By-Step
Here’s the clean path from idea to first sale. You’ll plan, choose a structure, set up money tools, register when needed, and ship your first offer.
Pick A Simple Idea You Can Deliver Weekly
Start with a service or product you can repeat after school. Match it to skills you already have. Keep the scope tight so quality stays high and clients return.
Starter Ideas, Costs, And Legal Notes
Scan this wide table to spot a fit. Then pick one idea and move ahead. You need only one strong offer to start.
| Idea | Startup Cost | Permission/Notes |
|---|---|---|
| Tutoring (math, languages) | $0–$75 (printables, markers) | Parent consent for late visits; set clear session rules. |
| Yard Care & Snow Shoveling | $50–$300 (tools, fuel) | Check local door-to-door rules; mind noise hours. |
| Cleaning & Organizing | $30–$120 (supplies) | Use non-toxic cleaners; get a simple service agreement. |
| Pet Sitting & Dog Walking | $0–$60 (leashes, bags) | Emergency contact card for each pet; proof of instructions. |
| Digital Design (logos, covers) | $0–$50 (apps, fonts) | Keep rights clear in your proposal; deliver files on time. |
| Content Editing & Captions | $0–$20 (editor app) | Ask for asset rights; no copyrighted music without a license. |
| Reselling (thrift flips) | $50–$200 (inventory) | Track cost of goods; follow platform age rules. |
| Homemade Crafts & Prints | $40–$150 (materials) | Check cottage rules for handmade goods in your area. |
| Basic Tech Setup (routers, apps) | $0–$80 (tools) | Written permission to work on a device or network. |
Choose A Legal Structure You Can Manage
Most 16-year-olds start as sole proprietors. It’s simple and fast. Some regions allow a minor to form an LLC with a parent or guardian listed. If your area asks for an adult on paperwork, loop in a parent early. A simple plan: start as a sole proprietor, then switch to an LLC once revenue grows or contracts get bigger.
Map The Rules And Register Where Needed
Rules differ by state or country. Some small solo services need no registration beyond a trade name filing. Others need a permit or a sales tax number. The SBA “Register your business” guide explains where and when a filing is needed in the U.S. Use the official site for forms, not third-party fee sites.
Set Up Money: Banking, Payments, And Taxes
Banks and payment processors set age rules. Many ask a parent or guardian to co-own the account so payouts can land. Keep business money separate from personal money so tracking stays clear. For taxes, you may need a tax ID for the business, or you may file income on a parent return or your own return depending on local rules. Keep every receipt from day one.
Create A Name, Offer, And Price
Pick a clear name you can say on a call. Write a one-line offer: who you help, the outcome, and the price. Price by the job, not the hour, for beginner services. Raise rates after your third happy client.
Legal Basics At 16
Being 16 adds a few extra steps. None of them block you; they just change who signs what and where money flows.
Consent And Co-Signing
Some states limit a minor’s ability to sign contracts without an adult. When a platform or vendor asks for a contract, have a parent or guardian co-sign. Keep copies of every signed document in one shared folder.
Licenses And Permits
Local rules may require a home-based business permit, a sidewalk vending permit, or a sales tax account. Check city and state portals. If a form asks for an owner who is 18+, add your parent as manager on paper while you run day-to-day tasks.
Taxes And IDs
If you sell goods or hire helpers, the agency may ask for a tax ID. Apply through official government sites only. Many scams charge fees for free IDs. When in doubt, ask a parent to review the link and the URL ending.
Privacy And Data From Kids
If your site or app collects data from children under 13, strict rules apply. The COPPA rule lays out consent and disclosure duties. If your audience includes families, set data collection to the bare minimum, and use clear notices.
Marketing That Brings First Clients Fast
Start with proof, then spread the word where buyers hang out. A small portfolio beats a long bio. Two strong samples can land the first three clients.
Build A One-Page Home Online
Use a simple page with your offer, prices or “from” prices, three bullets on scope, and one call to action. Add a booking link or a short form. Keep contact fields light so people finish the form.
Pick Two Channels And Commit
Choose any two: flyers near a school, a local marketplace, a neighborhood group, or DMs to small shops. Post samples weekly. Share short wins from clients (with permission). Keep outreach steady; slow and steady beats a giant burst once a month.
Write A Simple Pitch That Works
Keep it short: who you help, the outcome, and the next step. Offer a clear lead magnet if it fits, like a price sheet or a before-and-after photo. Close with one action: “Reply with a date for a free 10-minute chat.”
Money, Pricing, And Simple Books
Cash flow matters more than fancy tools. Track every dollar in and out so you always know if the business is healthy.
Set A Starter Price
Add up your time, costs, and a small profit. If a session takes one hour to deliver and 20 minutes to prep, price for 80 minutes, not 60. Sell in small packages to raise average order value without scaring new clients.
Create A Tiny Profit Plan
Use a three-bucket split on every payment: 60% to working funds, 25% to savings and taxes, 15% to your pay. When savings hits your three-month goal, shift that 25% toward growth tools.
Bookkeeping In 15 Minutes A Week
Log income by client and by date. Log costs with a photo of each receipt. Tag costs by category: materials, tools, transport, and fees. A simple spreadsheet works on day one; upgrade later if you like.
Service Quality And Risk Checks
Trust builds repeat work. A few small habits protect you and your clients.
Scope, Deadlines, And Revisions
For each job, define what’s included, what’s not, and when it’s due. Offer one round of revisions on early projects. State a clear rush fee so last-minute work stays fair.
Safety While Working
For in-person tasks, bring a buddy or share your location with a parent. Meet new clients in a public spot for the first handoff. Use a work phone number or a separate email to keep boundaries clean.
Launch Timeline And Checklist
Use this table to plan a two-week sprint to your first sale. Adjust dates to fit school and sports.
| Step | Target Time | Output |
|---|---|---|
| Pick one offer | Day 1 | One-line promise and a starter price |
| Get parent consent | Day 1–2 | Text or email approval; co-sign if needed |
| Choose structure | Day 2 | Sole prop now; note LLC later |
| Name and trade name | Day 3 | Search and pick a name; file if needed |
| Money setup | Day 3–4 | Account with parent added; payment app ready |
| Register or permit | Day 4–6 | Any required local filings submitted |
| One-page site | Day 6–7 | Offer, prices, form, and contact live |
| Portfolio or samples | Day 7–9 | Two samples or one case with photos |
| Outreach sprint | Day 9–12 | 20 pitches or 10 local visits |
| Deliver first job | Day 12–14 | Invoice paid; request a short testimonial |
Forms, Templates, And Scripts You Can Copy
Keep these short. Plain words beat legal jargon you don’t need.
One-Line Offer
“I help [who] get [result] with [service] for [price or range]. Turnaround in [time].”
Scope Line For Every Job
“Includes [list]. Excludes [list]. One round of edits. Delivery by [date]. Payment due on delivery.”
Pitch Script
“Hi [name]! I help [who] get [result]. I have [slot] this week and can deliver by [date]. Want me to send a quick quote?”
Parent Co-Sign Note
“I, [parent name], consent to [teen name], age 16, operating [business name]. I will co-sign required forms and handle any bank setup.”
When To Level Up Structure
Switch from sole prop to an LLC when you land bigger clients, sign longer contracts, or want stronger separation of business and personal assets. An LLC may need a registered agent and annual reports in many states. Keep filings current so your protection stays intact.
Common Roadblocks And Simple Fixes
“I Can’t Open A Business Bank Account Alone.”
Add a parent as co-owner or manager on the account. Many banks allow teen accounts with an adult present.
“A Platform Rejected My Age.”
Some payment tools and marketplaces ask for an adult owner to accept payouts. Use a parent-owned account with you added as the operator until you turn 18.
“Clients Keep Asking For Discounts.”
Offer a small first-time package instead of cutting the base price. Raise the rate after three on-time deliveries and one testimonial.
“Paperwork Feels Overwhelming.”
Work in this order: name, money, registration, permits, site, outreach. Tackle one task per day. Use official portals for filings.
Proof And Reviews
After every job, ask for a two-line review and permission to share photos. Add the review to your site and pitches. Real results bring the next client faster than any ad.
Final Word For Teen Founders
You can run a real venture at 16 with a tight offer, simple systems, and steady outreach. Handle consent, bank setup, and filings with a parent in the loop. Keep your promises. The rest compounds.
Helpful official resources: SBA registration guide and the FTC COPPA rule for any site or app collecting children’s data.