Cost vs reward ratio of multiple accounts?

[catdaddy]

Hello. I'm just curious about something.

Amazon requires tax information from most sellers when they reach just 50 sales (or earlier). Many individuals run dozens of accounts at a time. Because you need a different ein number for each account (and thus a different licensed business for each ein), are people really paying several hundred dollars per account to establish separate llc's (or similar designations) per year? Is that cost factor (plus all of the other associated costs/investments of being Ghost) really worth it, especially when the maxim for new accounts is to sell as slowly as possible? Additionally, if one of your accounts goes down after you've entered the tax information, that's that entire business's fees down the drain.

I am not entirely clear on this side of the Ghost equation, and am very curious/concerned.

Also, does Amazon suspend your account immediately if you reach 50 sales and have not entered tax information yet? That is their claim. I did see that one forum member claimed that he was able to continue to sell for a while, but that is a very small experiential group.

It would be nice if you could delay entering tax info until the end of the year so that you could be certain your account would survive until then.

Thank you to anyone for their insight in advance. I appreciate it very much.

[Dmshark25]

Just think , if u have multiple accounts some will make it others may not , start the first couple months very slow but open say 10 accounts and maybe sell 10 items per account that's 100 a month or open 20 accounts and sell 200 items a month which if amazon does require a EIN number at 50 sales at this rate u can still sell 200 items per month and than u will have more time to decide which accounts are running well and are the best ones to get the EIN, maybe out of 20 accounts after a couple months you may be only left with 10 accounts( this is an example you may still have all 20) and out of them 10 you have 8 with great seller rating/performance/feedback , so those 8 are the most likely to be the strongest accounts and worth an investment of a couple hundred dollars, just realize how much money they will bring you in, you can get that back in a day.

You need to spend money to make money. And operate your amazon account well so it doesn't get shut down right away and all the initial costs will pay itself. A couple hundred is nothing to start a business