Paypal and IRS

[chavar]

I opened 5 accounts and doing great. 2 Days ago I received I notice from paypal saying that I was getting close to 200 transactions and I had to provide EIN for my paypal account. I am confuse because I didn't know paypal request this information. The EIN they are asking is for a account I created under a friends name but I know he won't give me his social or personal information to give to paypal. I read in the blog the I should open a Corp. and provide them with the Corp EIN number . If I register cooperation under my name won't paypal cross match my information and close my account

[ftf101]

this is answered about 100+ times throughout the forum. the search button does wonders!

[AmazonStealth]

everything you are doing is a set up for failure to be honest.

[Impact]

Originally Posted by AmazonStealth

everything you are doing is a set up for failure to be honest.

How is it set up for a failure?

[lisa21801]

Hi,
Yes the answers are here, but I know sometimes they are hard to find,as we all have a different understanding and wording of things.
The business accts are the way I always go.
An ein is provided by IRS, upon request,
Also a tin is provided.
They need a so called registered agent/owner.
This does not mean that the same person has to file that particular tax return.
I use alot of llcs, then I have certain ones under a master umbrella s-corp.
Good luck.
P.s. I can elaborate more, but only via pm.

[AmazonStealth]

Originally Posted by chavar

I opened 5 accounts and doing great. 2 Days ago I received I notice from paypal saying that I was getting close to 200 transactions and I had to provide EIN for my paypal account. I am confuse because I didn't know paypal request this information. The EIN they are asking is for a account I created under a friends name but I know he won't give me his social or personal information to give to paypal. I read in the blog the I should open a Corp. and provide them with the Corp EIN number . If I register cooperation under my name won't paypal cross match my information and close my account

Flaws:
-Account is not your information
-You need to provide EIN/SSN, but the account in not in your name.
-This means you need your family/friends EIN.
-If they were to give you their EIN, they would be responsible for tax info.
-All income would fall on their tax income.
-You would need to pay their taxes for the income you made.

It is just a huge cluster fu!k, and wont be a long term solution. Just create a new account with your information for long term stability, get an llc or sol pro EIN, new address, and do it right.

[Impact]

Originally Posted by AmazonStealth

Flaws:
-Account is not your information
-You need to provide EIN/SSN, but the account in not in your name.
-This means you need your family/friends EIN.
-If they were to give you their EIN, they would be responsible for tax info.
-All income would fall on their tax income.
-You would need to pay their taxes for the income you made.

It is just a huge cluster fu!k, and wont be a long term solution. Just create a new account with your information for long term stability, get an llc or sol pro EIN, new address, and do it right.

-Account information does not have to be his.
-Regardless if the account is under his friends name, he can obtain an EIN number under his corporation and provide that EIN number to paypal.
-Again he only needs to open an S-corporation under his name and obtain an EIN number.
-All income will fall on him since the S-corporation is under his name.
-He only needs to pay his taxes under the S-corporation, friends don't play any role here.

Paypal is not able to obtain any information in regards who owns the corporation. In my opinion he should continue his business on his friends account and in addition create another account for back up.

[Futuremogul888]

Originally Posted by chavar

If I register cooperation under my name won't paypal cross match my information and close my account

I just answered this a week ago. The short answer is no. Only certain government agencies can see the owners information.

[crocus]

Originally Posted by Futuremogul888

Only certain government agencies can see the owners information.

This is totally wrong. Anyone can look up a corporation and see what name it is registered under. If you use a registered agent, that is all the public sees and the true owner is hidden. If you register it under your own name, that info is out there for anyone to look up and find.

[AmazonStealth]

Originally Posted by Impact

-Account information does not have to be his.
-Regardless if the account is under his friends name, he can obtain an EIN number under his corporation and provide that EIN number to paypal.
-Again he only needs to open an S-corporation under his name and obtain an EIN number.
-All income will fall on him since the S-corporation is under his name.
-He only needs to pay his taxes under the S-corporation, friends don't play any role here.

Paypal is not able to obtain any information in regards who owns the corporation. In my opinion he should continue his business on his friends account and in addition create another account for back up.

This is not a long term solution.