questions on EIN before I add to PP

[jack702]

I started fresh a few months ago. So far so good but I need to add EINs to my PP before they ask.....

That being said, at the end of the year they send out the 1099 IRS doc. It will have my EIN on it, but a stealth name because you cannot change PP name.

Is this mis-match info okay? I don't want to create problems with my taxes etc.

TIA

[celebrityphotos4you]

If you add an EIN to your stealth PayPal account, you're going to get flagged. I did that and I've learned my lesson. The goal is to never have PayPal have to deal with an SSN or EIN.

You are supposed to get a 1099 IRS doc if you exceed $20,000 annual.
PayPal starts asking you for an SSN or EIN after 200 transactions AND $20,000 annual. But let's say you've only been selling for one month and you made $2000. PayPal WILL send you a request for SSN or EIN, because they break it down monthly and project yearly. In other words, you made $2000 this month, so in 12 months you project to $24,000. BAM. PayPal will send you request.

So goal each month is to max out let's say at $1500/month ($18,000 annual), so that you NEVER get the PayPal request.

[TheTaker16]

Does that same methodology work for the amount of transactions done on that individual account?

Sounds like it would but it would be nice to hear it from someone else!

Originally Posted by celebrityphotos4you

If you add an EIN to your stealth PayPal account, you're going to get flagged. I did that and I've learned my lesson. The goal is to never have PayPal have to deal with an SSN or EIN.

You are supposed to get a 1099 IRS doc if you exceed $20,000 annual.
PayPal starts asking you for an SSN or EIN after 200 transactions AND $20,000 annual. But let's say you've only been selling for one month and you made $2000. PayPal WILL send you a request for SSN or EIN, because they break it down monthly and project yearly. In other words, you made $2000 this month, so in 12 months you project to $24,000. BAM. PayPal will send you request.

So goal each month is to max out let's say at $1500/month ($18,000 annual), so that you NEVER get the PayPal request.

[celebrityphotos4you]

It would be interesting to know from other people as well.

I was flagged at 305 selling transactions (and $3000 in sales at the time) so not sure if the transactions or the $$ amount was what initiated the flag, but pretty sure it's the $3000 in sales because I made $2000 the last 30 days.

[oethumb39]

I got asked on two accounts before I hit 100 transactions. and the dollar amount total in my account was barely $3000.
My case was they asked for the number of items sold approaching 100

[puffbandit]

Having known this, what is the point of buying a stealth acc with higher than 2000/mo limit? Because i bought one and didnt forsee this problem until you mentioned it.

Originally Posted by celebrityphotos4you

If you add an EIN to your stealth PayPal account, you're going to get flagged. I did that and I've learned my lesson. The goal is to never have PayPal have to deal with an SSN or EIN.

You are supposed to get a 1099 IRS doc if you exceed $20,000 annual.
PayPal starts asking you for an SSN or EIN after 200 transactions AND $20,000 annual. But let's say you've only been selling for one month and you made $2000. PayPal WILL send you a request for SSN or EIN, because they break it down monthly and project yearly. In other words, you made $2000 this month, so in 12 months you project to $24,000. BAM. PayPal will send you request.

So goal each month is to max out let's say at $1500/month ($18,000 annual), so that you NEVER get the PayPal request.

[celebrityphotos4you]

I'm asking myself that very idea myself. I bought a 1000 item account and now realize it would have been good to just buy a 100 or 500, but my reasoning is that not all my items sell, so perhaps with a 1000 item, you are giving yourself more chances to make a sale with different products.