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Own It and Run ItStraight answers for anyone under 18 trying to run a small business

The Five-State List That Is Wrong About Two States

Sources last read 2026-07-16.

Short answer

Search this and you will find the same five states again and again. Colorado, Illinois, Minnesota, Oregon and Texas. Three of those are right. Minnesota has been wrong since 2018, when the old law was thrown out. Texas was never right at all, and the state government says so on its own website. None of the pages naming those five states shows you a law. This one shows you all of them.

The list, and where it came from

Three of the biggest pages on this subject carry the same five states. Colorado, Illinois, Minnesota, Oregon and Texas. Same five, same order, no law quoted on any of them.

That last part is the tell. When a page tells you what the law says and does not show you the law, it usually means nobody read it.

Here is each one.

Colorado. Real. The state's law says a person filing has to be 18 or older.

Illinois. Real, and the wording is above.

Oregon. Real. The law says individuals 18 or older may form one.

Minnesota. Not real, and has not been for eight years.

Texas. Never was real.

What happened in Minnesota

Minnesota used to have a rule saying an organizer had to be at least 18. It sat in a chunk of law numbered 322B.105.

That whole chunk was thrown out. The new law took over at the start of 2018. The new one, quoted above, has no age in it anywhere.

So a page naming Minnesota today is describing a rule that stopped existing before some of the people reading it started high school.

What happened in Texas

Nothing happened in Texas, which is the point. Texas law asks a different question. It asks whether you have the ability to make a contract. That is about your situation, not your birthday.

And the office that actually handles the filing says so in plain words on its own website. That quote is above too.

An example, to show the shape of it

Russell is 16, in Texas, and doing well enough fixing bike gears that somebody suggested he "make it official." He searched it, found the five-state list, saw Texas on it, and decided he was not allowed.

He was allowed. He also did not need to. He was already a business, he just had not been told the word for it. The list cost him about a week of thinking he had hit a wall that was not there.

The part that matters more than the list

Almost nobody reading this needs a company at all.

If you sell things or do jobs under your own name, you are a sole proprietor already. No filing. No fee. No form. That is the default, and it happens on its own the moment you start.

Companies do something specific. They put a wall between your business debts and your own things. That matters when there is real money or real risk involved. For a mowing round or a print shop run out of a bedroom, there is usually nothing on either side of the wall yet.

Every page that told you about the five states also sells company formation. Look at the button at the bottom of those pages. That is not a reason they are lying. It is a reason nobody there was ever going to write the sentence you actually needed, which is that you probably do not need this.

Before you do anything with this

Rules change. This page was last checked on the date at the top, and the Minnesota story is proof that these things move without anyone announcing it.

Go and read your own state's law. Everything you need is linked below. And before you file anything or pay anyone, show an adult what you found.

Illinois says it plainly

One or more persons, other than natural persons under 18 years of age, may organize a limited liability company.

805 ILCS 180/5-1

A natural person means a human being. So in Illinois, a human under 18 cannot be the one who files the paperwork. This one is real. If you live in Illinois, an adult has to do that part.

Minnesota's law today

One or more persons may act as organizers to form a limited liability company by signing and filing with the secretary of state articles of organization.

Minnesota Statutes 322C.0201

Read it twice and look for an age. There is not one. The old Minnesota law did have an age rule, and it said 18. That law was thrown out at the start of 2018. The pages still naming Minnesota are quoting a law that has not existed for eight years.

Texas, from the state government itself

The Texas Business Organizations Code does not impose any age requirements on who can be an owner, officer, or director in a business entity.

Texas Secretary of State, business formation questions

That is the office that actually processes the filing, saying there is no age rule. Texas law asks whether you can make a contract, which is a different question from how old you are. Texas should never have been on the list.

Questions people actually ask

So can I start one or not?

In most states, yes, and in a few you will need an adult to file it. But that is the smaller question. The bigger one is whether you need a company at all, and for almost everyone reading this the answer is no. If you sell things under your own name, you already have a business. It is called a sole proprietorship and it costs nothing.

Why would three big websites all be wrong the same way?

Because they copied each other. None of them shows a law, which is the tell. Once one page published the list, the next page repeated it, and nobody went back to check whether the Minnesota law was still there. It was not.

How do I check my own state?

Search for your state's name plus the words limited liability company statute, and look for the page on a .gov address. Then look for the word organize or organizer, and see whether an age appears near it. If no age appears, there is no age rule. That is the whole method, and it took me about ten minutes per state.

Does this change if my parent owns part of it?

Owning part of a company, filing the paperwork, and being the official contact are three different jobs, and the rules are different for each. The pages that get this wrong squash all three into one question. If you are going down this road, that is the distinction to keep hold of.

Where this came from

Illinois General Assembly, 805 ILCS 180/5-1
ilga.gov

Minnesota Office of the Revisor of Statutes, 322C.0201
revisor.mn.gov

Minnesota Office of the Revisor of Statutes, the repealed 322B.105
revisor.mn.gov

Texas Secretary of State, business formation questions
sos.state.tx.us

Oregon Revised Statutes 63.044
oregon.public.law