Paypal - Business Start Date? / EIN

[fthedj]

I understand that is I use an EIN to satisfy the IRS requirements on Paypal that they check the business start date

How do they do that?

I have a Paypal business account as a sole prop but want to change it to an LLC and supply an EIN

Will this work?

[defon]

I have made a dozen biz stealth accounts. I just make the start date the date i made the account. I NEVER give a EIN. But if you really wanted to you can go to IRS.gov and get EIN with out filing with the state... IRS will not be happy if you never file... if they find out.

Maybe putting the start date as the same day makes it impossible for PP to research... maybe I'm just lucky. I have used these accounts for only a day or two and never log in again... so maybe it would cause an issue long term.

[RedShootingStar]

You can get an LLC at any time, but be aware there are registration fees, etc. Since you HAVE to pay taxes, you might as well talk to your tax adviser to see what the best option is. Personally, I would stick with an EIN.

[KingRay]

Absolutely talk to an adviser of some sort so you can get that all straight before you do anything.

Business start date may affect you when applying for loans, taxes, insurance, etc. one of the things these guys on here fail to realize when throwing around EIN info on paypal and amazon. It will bite them, you watch.

people see that legalzoom type stuff and think they are good to go.. The most of the cost is still needed to be paid after that site is done with you. Most of your legal fees will be with your state and that has to be paid on top of the website prices.
Those websites are fine if you know what you are doing and want them to do some of the work but there is still much to deal with on each option they offer.

[fthedj]

OK thanks for your feedback guys

My main concern was how paypal checked the business start date for an entity associated with an EIN, or if they even checked that info

[KingRay]

They supposedly do check the start date but as many things they do on one and not the next. Or they dont act on it immediately.. really not for sure so none of us will know. They do ask that question so I would assume its going to need to be the same.

[fthedj]

Thanks! Any idea if there is a problem changing a Paypal business account that was initially setup as a Sole Prop to an LLC? The start date for the LLC predates 2011

[GreenBean]

If the account is going OK, there should not be a problem.

But since it's paypal, who knows what might happen?

You can consider speaking to them by phone to discuss your business plan.

They like that

Also: make sure you speak to a tax professional to ensure everything is being done to comply with IRS requirements.

This is not the field of expertise on the forum

[fthedj]

Thanks for the replies!

I have good advice on the non-Paypal LLC formation/accounting side, I just want to make sure that I do everything right with Paypal.

I currently have the Paypal set up as a sole prop and have not given them the Tax ID info they have been requesting and want to give them an EIN for an LLC and just wanted to make sure that wouldn't raise any red flags with Paypal or have them ask for the SSN of the sole prop - has anyone had experience changing business type from sole prop to LLC since Paypal started asking for Tax ID?

[KingRay]

I think the only way that they would bother with asking for SSn in addition is if maybe your EIN didnt match up to your business, etc.

As for changing, I dont think so. I would do what greenbean said and just call them. Its much better if you ask what you should do directly that way they can feel all helpful and such. They love that crap.

[fthedj]

Great, thanks for your help!