Generation Z is the generation that was born from 1997 to 2012 and is the first generation to grow up with access to the internet and advanced mobile technologies such as smartphones and tablets. These circumstances have allowed the "Zoomers," as they are often called, to be more adept with this sort of technology than their predecessors, the Millennials, Generation X, and the Baby Boomers. The previous generations had to adapt to and learn how to use these technologies at a later age, while Gen Z grew up with them as a part of their daily lives. This gives Generation Z an incredible opportunity in business, as we have seen how important this technology has become to the business world.
As of 2022, the oldest Zoomers are 25 years old, and the youngest of the generation is ten years old. At these young ages, Generation Z can start their own businesses, including those who are under the age of 18. In this article, we will discuss how Gen Z can become entrepreneurs online and in the physical world. In addition, we will discuss the legal requirements for those under 18 years old to start a business legitimately, as well as those above the age of 18.
If you are a teenage Zoomer starting your own business, it's important to take the proper steps to make sure your business is operating legally. As part of Generation Z, the generation that is on pace to become the most educated generation, you are likely to figure things out pretty quickly. You may surprise yourself with the amount of success you can reach being a teenage entrepreneur. This success, though, can come with responsibility and risks. Gen Z teen entrepreneurs can face serious legal issues if they have not taken the necessary actions to make their businesses legitimate. People can sue you, and you could be vulnerable if you have not registered your company as a recognized legal entity. Using a business entity such as an LLC (limited liability company) can provide liability protection for you, which means you won't be held personally liable if someone was to file a lawsuit against your company.
Also, there are tax liabilities involved, and if a Generation Z teenager generates more than $400 with their company, they will need to pay taxes on this income. As a teenage entrepreneur, you can protect yourself legally by taking all of the necessary legal steps to run a business legitimately.
A business that is recognized as a legal entity by the state will have to use a business structure such as an LLC; this also applies to companies owned by Generation Z teenagers. LLCs are very commonly used because they are easy to create, are very versatile, and also provide liability protection. However, another structure, such as a corporation, could be more beneficial for your company depending on the particular type of business you are starting. Doing adequate research or speaking with an expert about which business structure is right for you can help you decide.
Your local state, county, or city governments may also have specific laws or requirements you must meet in order for you to run your business legally as a teenager. This can include getting any necessary business licenses or permits, which may differ depending on what type of business you own and the area you live. Your city or county should have all of this information and whatever else is required for teen businesses to operate listed on their websites. Gen Z teens can also communicate with local officials that are in charge of business licensing to see what other things may be required of them.
To get a business license or permit, Generation Z teens must complete all the required documents and forms in addition to paying any necessary fees. What forms you must fill out and the fees you will need to pay will differ from state to state. Depending on where you live and the local regulations regarding teen businesses, a Gen Z teen may need to write and present a thorough business plan to demonstrate that they understand the legal and financial aspects involved in running their own business. Local government officials can help you understand and guide you through this process. Gen Z teens can enter contracts legally but may need a legal guardian to sign off on them. As a teen, getting a business license or permit could be complicated and take time, so it's best to start the process as soon as possible so you can focus on getting started running your business.
If you are a Zoomer over 18 and want to start a business, the process is pretty straightforward. For your business to become a legally recognized business entity, you will need to form a business structure such as an LLC or corporation, list your registered agent, and get any necessary business licenses or permits. This process will vary depending on where you live and the type of business you will start, but typically as an adult, you won't have to fulfill the additional requirements an underage teen might have to. Creating a well-detailed business plan, conducting market research, and preparing in other ways can help you succeed once you've started your business.
Both teenage and adult Zoomers looking to start a business can gain inspiration from their own personal interests, skills, and talents. If you have a particular hobby or area of interest, you could start a business that is related somehow. For example, if you are interested in something like creating arts and crafts, homemade candles, or your own t-shirts, you could start an Etsy store where you sell these items. If you have a particular skill in a specific area, you could create a business around that skill. For example, you could start a video production company if you are very good at making and editing creative videos. Gen Z has grown up with the internet, tablets, and smartphones; this means they are naturally more inclined to be skilled with computers and using online platforms. This gives Gen Z an excellent opportunity to get involved with online business and marketing. Zoomers could start their own websites, affiliate marketing campaigns, or YouTube and TikTok channels, using social media platforms to help market their businesses. Zoomers could also create physical in-person businesses that they could promote online to attract more customers. An example of this could be a dog-walking business that is advertised online on various platforms to help draw in local customers.
Zoomers can benefit greatly from starting their own businesses. Whether they are teens or young adults, by starting their own companies, Gen Z can develop their social and communication skills and gain more experience dealing with finances. Zoomers can use their creativity while learning more about their field or areas of interest, all while generating an income and moving towards financial independence. While not every business a Zoomer starts will end up becoming what they do for the rest of their lives, starting and running a business could help them learn valuable skills they could use in their future, either in business or as an employee.
Gen Z members are creative, intelligent, and hyperconnected with each other and the world as a whole. These traits lend themselves exceptionally to creating and running a business. Zoomers also highly value authenticity and social responsibility from the brands they support. Generation Z can infuse this social awareness into shaping their own companies' values and social initiatives. By starting their own companies, Gen Z can use their strengths to create new opportunities for themselves, help others, and create positive change in the world around them.
