Re: PayPal Questions EIN for 1099
When you apply for an EIN with the IRS, the information becomes a part of their records. Amazon and PayPal (and any other payment processor) will match the EIN with a NAME.
If the EIN is for an LLC, Partnership or Corporation, then the match is made on the BUSINESS NAME with the EIN.
If the EIN is for a sole proprietor, then the match is made on the INDIVIDUAL NAME and the EIN. Sole Proprietor Matching: JOHN M SMITH, 35-1254187
LLC, CORP, Partnership Matching: Advanced Business Systems LLC, 35-8596547
The reason is that an LLC or a Corporation is considered a legal entity. In the case of sole proprietor, the legal entity is the sole proprietor, even if is JOHN M SMITH D/B/A JOHN'S PIZZA. Registering a DBA does NOT create a new legal entity the same way the creating a corporation or an LLC does.
Last edited by jeffweico; 08-14-2014 at 03:04 PM.
|