There was a time when children could find summer internships with little effort, but the current climate means many students will be unemployed this summer – unless they decide to become self-employed.
One small business forum says that many students are likely to start businesses this summer to gain experience in the professional realm. But many parents may not realize they could be liable for their children’s startup companies. This shouldn’t stop kids from starting companies, but it does go to show it’s never too early to consider business incorporation.
The small business forum recommends students consider doing the necessary paperwork to get their companies started. Not only will this make their startup ventures look more credible, but it will protect their parents’ personal assets.
Parents are advised to talk to entrepreneurial kids about business formation. They can help kids develop business plans, find insurance and – especially if moms and dads decide to become investors – they can discuss the business types that will benefit shareholders.
Students may be smart to do their homework on business incorporation now so they’ll be ready in the future. According to a report from the Kauffman Foundation, national universities are increasing their entrepreneurial training programs to accommodate young Americans’ growing interest in business endeavors.