Soon to be 16 year old S has been making graphics and assisting video designers online for the past year without any financial compensation (which has been fine with us and him since he’s just been having fun and getting experience).
Now these same people want to pay him but the problem is two fold: he doesn’t want to disclose his first name and last name to anyone (2) Venmo and PayPal require him to be 18.
So, what options are out there for teens like this restricted by age for some typical cash app options, and, for not wanting to disclose his real name to anyone. (He would like to use the username he uses when communicating with others.)
I’d look into setting up an account with my kid’s user name (or maybe a similar one, preserving that one for when he reaches majority) and transfer the funds to them.
You are comfortable with him providing these services to his established customers but not them learning his name? I can’t envision this scenario.
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I’d think this would be an issue because these websites probably have legal reporting requirements due to concerns such as money laundering. I suppose they could just send him a check to a PO Box made out to cash?
Maybe an example will help:
He helped design character merchandise for an small game designer for hoodies, tshirts, etc. The owner sent my S a hoodie and a tshirt that my S had designed for him as payment per se.
Now the same guy who S to do my work for him but would like to pay him if possible.
Could the client Venmo you?
Yes, they could Venmo me. And I’ve explained that to S. However, he wants the payment to be to his username and I’ve tried explaining to him that just Bc he may want it to be that way, it may not be possible or legal. I’m clearly ignorant about all of this business but I’ve told him that it may be he just can’t get paid until he’s 18.
We are looking at CashApp app now to see what that all involves.
I think what S wants isn’t possible. (For some reason he doesn’t want his real name out there. Perhaps Bc over the years we always stressed never to give your name to anyone online -eg when playing video games with some random person in the world).
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The customer will want to deduct the payments to your son as a qualified business expense, to either your son, in real name, or a corporation he runs. Boys of 16 use their true names in applying for jobs in your community every day. Your son can, too, or he can continue to volunteer.
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Thank you! I’ve tried explaining this to him but this is more clear. I think the variable of being online is what he mistakenly thought allows him to be anonymous. But when acting as a business or accepting money from a business, than you are not a fictional character, and you have to provide your name.
I was thinking that you set up a separate Venmo account, but with son’s user name. Then his money is separate from yours.
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My understanding is the Terms is Service for Venmo is for personal vs business payments - ie: friend pays you back for lunch. Maybe they have a business one too - but in the past this was not for business payments.
Paypal is for business and will take a fee. You can set up
a paypal acct for him and only the business name and info shows that your son inputs into the invoice - so while the account is linked to his name and your bank account - the client will only see what is on the invoice with your son linking the invoice through his email/user name.
I believe the issue there is whether a 16 year old can set up a business entity? The 18 year old threshold has to do with being able to legally enter into the agreement with PayPal. 16 year olds can have bank accounts in their legal name. Don’t think a 16 can “own” a business because they can’t legally enter into a binding contract.
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This is all helpful but also makes my head spin. This is not my area at all.
It is sounding like he would need an occupational license perhaps and get an actual business name? Sigh. I am naive and was stupidly thinking this is like a mowing the yard kind of summer job. But clearly not. So….maybe he does this volunteer wise only until 18.
The issue came up on Father’s Day. Many relatives we’ve not seen since 2019 were here (all vaccinated) and he was showing them what he’s been up to the past 19 months- helping people with web designs, computer graphics in video games, and creating web design merchandise. They were all saying he should be charging for his work! So…like any 15 year old, he is thinking, “Yes! I’d love money for doing what I’m doing!
Hence now he is eager to start the ball rolling bc he’s had another person wanting to hire him in past week- friend of a person my S has helped in past year.
I just learned of Zelle this morning from somone at my grocery store. Am looking into it, too.
(Can you tell I’m in over my head? I’m ready to tell him he can’t make money until 18.)
Zelle also has an age-18-minimum requirement.
It is also not supposed to be used for business or commercial payments.
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He should get paid - my my kids tutored, and did catering help making anywhere between $100-$750 per client when they were minors. It was all cash or check - he should be paid and needs to get over not allowing his name to be known. It is great he has a business and clients. Maybe you are talking about bigger amounts ?
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Not big amounts. I’m assuming less than $50 for various things. Like he designs cute little animal characters or background views of wolves sand mountains and fog so not much money at all IMO. But for him, $20 is even nice.
Other times he adds music and colors and fonts to various games, etc.
(He does other things that are more complicated but my appreciation for what he does is limited to, “That looks great, honey. I’m impressed.”)
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