 EIN help for when you get limited
I was really nervous to do this but all worked out so hopefully this may help you out if your in the same position I was in.
I am NOT a tax professional this is just a recommendation.
For all the people who get stuck with the 200/20K projection limitation I can at least verify this method which isn't new but may be to some.
If your ok with not going over the 20K mark and just want a good strong account with an EIN attached so you can at least exceed the 200 sales limit than you can just apply for a EIN on IRS website and when asked by Paypal to enter it you do so.
For me I couldn't because I was "limited" so it wouldn't let me upgrade. I called in and asked very nicely if the rep could just enter in my EIN. He said I can enter in your social and then I told him why I preferred the EIN instead and he said fine and all went smooth. I then upgraded to a business account to be on the safe side in the future.
When doing this you will get asked the last four of your social and DOB. Now I just entered the last four of the EIN and my REAL DOB.
When using a EIN from the IRS as a SOLE PROPRIETORSHIP you WILL be connected to your social. If paypal for whatever decides to dig into your account, technically they will see your banned name (i.e social) As long as you keep your account UNDER 20K then no 1099 will ever get issued therefore there should be 0 linkage occurring. In other words there should be no reason for Paypal to ask the IRS what name is on this EIN unless you give them a reason too.
If you have a paypal account with your REAL name you can actually just keep the EIN and go past the 1099 mark but if its under your PHAKE name the 1099 will get issued under your PHAKE name not your BUSINESS name.
This stuff isn't new but I'm sure it can help some people so I figured I'd make a thread about it.
Again this is just my advice and I'm not a tax professional....
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