Riverview, FL asked in Business Formation, Business Law, Mergers & Acquisitions and Contracts for Florida

Q: How can a minor buy shares in a private startup company?

2 Lawyer Answers
Terrence H Thorgaard
Terrence H Thorgaard
Answered
  • Freeeport, FL
  • Licensed in Florida

A: No. The reason that the company wouldn't want to sell shares to you is that you could later change your mind and seek to set the purchase aside, on the grounds that you were a minor. You could do the same as the owner of a limited liability company.

Bruce Alexander Minnick agrees with this answer

Bruce Alexander Minnick
Bruce Alexander Minnick
Answered
  • Tallahassee, FL
  • Licensed in Florida

A: Until you are 18 your are not legally able to enter into any contracts. Period. The reason is because most kids under 18 are not capable of making sound financial decisions and can avoid responsibility if any company allows them to enter into contracts. The only other option is to get someone else to buy the startup in their name and hold it for you until you reach majority age. (Hint: I strongly suggest having a lawyer do it for you--at least then you know who to go after if the money goes missing.)

Terrence H Thorgaard agrees with this answer

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