Changing Personal Ebay to Business

[CFisher]

I have multiple ebay accounts, and I have an old one under my mother's name. I have to stay under the $20,000 mark, but the paypal has her social security number attached to it. My mother can NOT report any extra income, and I pay my taxes by just adding the profit I make to my own taxes. Sales are great under that account, and I would like to start using it for more sales. Can I switch the account to a business name, then open a business account on paypal with a business tax number to attach to the ebay account, or will this just cause trouble? And if I can, how does one go about doing this?

[Mitsu]

A while ago I asked a paypal rep over the phone a similar question, and from what I was told if you have both a EIN and a SSN on a paypal account, and it's a business account, they only report income to the EIN and your SSN on the paypal is only used for verification purposes.

I'm not sure if that's the case or not, never did it myself so definitely do some more research.

[CFisher]

Thank you.
See, my concern is that the EIN (I believe) has to be under the account owner's name, and I'd need the tax information to only be reported under my name, I can't risk it because my mother is on disability and obviously I can't put any of her health insurance or such at risk.
So I did want to get a new paypal to be absolutely certain that nothing would be an issue.

[Mitsu]

The EIN has to be under the BUSINESS NAME, no personal data is checked.

When you enter the EIN into paypal, the only verification they get from the IRS is either that the business name matches, or it doesn't.

[CFisher]

Sorry, I must have misunderstood, for some reason I thought I read that an EIN had to be matched to the name on the account.

Does anyone know if you can remove the social security number if you add the EIN?

[vogeltron]

Personally, what I would do. Is stop selling on the account. Close out your mothers PayPal. Then create a new PayPal with all your info and add the EIN once you have established the account.

Lots of people on here talk out of their behind. If you add the EIN to a PayPal registered under her name. When you get the 1099k for going over 20k/200 transactions. It will be filed under her name not the business name with the IRS.

Also the 20k is not 100% anymore. 2013 tax year was the first year that PayPal began putting the number of payments revived on the 109kk. 2011 and 2012 it was left blank.

Personally, anyone on here would say don't risk it even if you don't plan on selling the much. Go stealth and get it off your conscience. If you want to sell more and go the EIN route. You have to retool what you are doing.

[Mitsu]

Originally Posted by vogeltron

Lots of people on here talk out of their behind. If you add the EIN to a PayPal registered under her name. When you get the 1099k for going over 20k/200 transactions. It will be filed under her name not the business name with the IRS.

What are you basing that on?

[rsot]

Don't keep operating under your mother's name - learn stealth and use new accounts, rotate sales

[vogeltron]

Originally Posted by Mitsu

What are you basing that on?

Reading the forums. When it comes to this particular subject. The EIN and complying with the Tax ID for PayPal. Lots of people are giving advice without telling the risks, etc of doing this. Especially with a name registered on the PayPal that is not theirs or or a variation of it.

[Mitsu]

Originally Posted by vogeltron

Reading the forums. When it comes to this particular subject. The EIN and complying with the Tax ID for PayPal. Lots of people are giving advice without telling the risks, etc of doing this. Especially with a name registered on the PayPal that is not theirs or or a variation of it.

Yeah I agree, never risk giving hardship to friends/family for your income.

I'm just really curious myself for a concrete answer on who PP files the income with when a SSN and EIN is on the PP account.

[Ravenswood]

What if you have not supplied the SSN yet? I am planning to make my account that is working well a EIN number and all my business information.