Social/EIN/DAB/LLC questions :help:

[samiyoda]

I apologize in advance for asking a question that tons of people have probably already asked, but after doing research on the manner, I am stumped.

I had two of my previous amazon accounts get banned for purposes out of my control. One using my social and the other using an EIN. So I am trying to open another stealth account once again, however I have questions about an EIN number.

Is there any possible way you can get multiple EIN numbers? Or do you have to open up a DAB or LLC to get another one? I have read things online stating that you can get another one but you have to state that you're opening a business; would this give the IRS all the revenue exchange information going on in said account? Or does the "as long as you don't make over 20 grand a year Amazon won't give your tax information to this IRS" rule still apply if I were to go this route?

Any help and advice is greatly appreciated.
Thanks to anyone who answers in advance.

[jeffweico]

For now, PayPal, Amazon and other payment processors are only reporting accounts that go over the 200 items / $20,000 threshold. That COULD change in the future, if the law changes. But for now the threshold stands.

You can have as many EIN's as you want, but you can only get ONE EIN for a d/b/a. That is because there is a limit of ONE EIN per LEGAL ENTITY. And, when you use a d/b/a the name the IRS verifies will be YOUR NAME, not the BUSINESS NAME.

Each corporation, partnership or LLC is a SEPARATE LEGAL ENTITY, so each can have its own EIN. AND - when the information is verified with the IRS, they will only verify that the BUSINESS NAME matches the EIN. That is all. The IRS returns "match" or "no match". They do NOT verify addresses, they do NOT give out any information about you and they do NOT correct any information. That is why many people use these.

However, from your post it seems to me like you do not want to pay taxes on your profits. That is a BIG MISTAKE. If the IRS ever catches you, you are in for a WORLD OF TROUBLE! Jail would not be out of the question.

Some people mistakenly believe that if $20,000 in sales are reported, that they will owe taxes on $20,000. But that is NOT TRUE! You only owe taxes on your PROFITS. So, if you have $20,000 in sales and your profit margin is 10%, you would owe the taxes on the $2,000 in profit, NOT on the $20,000 gross sales.

If you have an income, be it from wages, a business, or investments you have made, you owe taxes on your profits. It makes no difference if the money is made online or offline. If your income is low, you will pay very little in taxes. If your income is high, you will pay more. That is how the system works. You can find all sorts of tax credits and deductions to reduce the amount of taxes you owe. That is perfectly legal and it is called TAX AVOIDANCE. Hiding your income, or giving false information to lower your taxes (or not pay at all) is called TAX EVASION and will earn you an all expenses paid vacation to CLUB FED! DON'T DO IT!!!

[samiyoda]

I wasn't trying to get out of paying taxes, I know that no matter what, you have to pay them. I was just wondering how to get another EIN. I tried yesterday online and it stated that you can only have one EIN per legal entity.

So I guess my question was really how do I get another EIN so that I could get back to selling on Amazon.
You explained the gist of it pretty well except that I am still slightly confused about how to retrieve another EIN. I understand that in the state of California it is ridiculously expensive to operate a LLC with the whole $800 dollars after 75 days of operating your new business fee (especially with the $750 selling limit for the first month). And the caution to not go ridiculously crazy in sale to feedback ratio, so that the account actually last so I won't have to go through this hassle all over again.

So I applied for an EIN before (with my previous account that was banned) so obviously using that EIN is out of the question for opening up a new account. However I want to ask would the IRS issue me a new EIN if I were to state that I am opening up another business? Or would they deny me getting one since it is still my name and my social that they use? And is DBA the same thing as requesting an EIN? I understand that no matter what (besides doing an LLC) that my information will be used. And therefore taxes will be payed to the IRS.

Please let me know. Thank you for replying. It really helped.

[jeffweico]

If you apply for another EIN for a DBA, they will not let you do it. You have to apply for an EIN for an LLC, partnership or corporation. You will have to use your name and SSN, but an LLC is a SEPARATE legal entity.

You do NOT have to have the LLC already set up when you apply for an EIN. It IS permissible to get an EIN for an LLC that you INTEND to set up.

I would avoid the state of California. You can form the LLC elsewhere. The filing fees for an LLC are only $85, which is normal, but they have an INSANE franchise tax yearly minimum payment of $800. That is ridiculous. I know of no other state that does that. The normal franchise tax is between $50 and $100, unless your corporation or LLC is VERY LARGE and then it is understandable.

I apologize about the comment regarding not paying your taxes. I totally misunderstood where you were coming from.

[shani1212]

Originally Posted by jeffweico

For now, PayPal, Amazon and other payment processors are only reporting accounts that go over the 200 items / $20,000 threshold. That COULD change in the future, if the law changes. But for now the threshold stands.

You can have as many EIN's as you want, but you can only get ONE EIN for a d/b/a. That is because there is a limit of ONE EIN per LEGAL ENTITY. And, when you use a d/b/a the name the IRS verifies will be YOUR NAME, not the BUSINESS NAME.

Each corporation, partnership or LLC is a SEPARATE LEGAL ENTITY, so each can have its own EIN. AND - when the information is verified with the IRS, they will only verify that the BUSINESS NAME matches the EIN. That is all. The IRS returns "match" or "no match". They do NOT verify addresses, they do NOT give out any information about you and they do NOT correct any information. That is why many people use these.

However, from your post it seems to me like you do not want to pay taxes on your profits. That is a BIG MISTAKE. If the IRS ever catches you, you are in for a WORLD OF TROUBLE! Jail would not be out of the question.

Some people mistakenly believe that if $20,000 in sales are reported, that they will owe taxes on $20,000. But that is NOT TRUE! You only owe taxes on your PROFITS. So, if you have $20,000 in sales and your profit margin is 10%, you would owe the taxes on the $2,000 in profit, NOT on the $20,000 gross sales.

If you have an income, be it from wages, a business, or investments you have made, you owe taxes on your profits. It makes no difference if the money is made online or offline. If your income is low, you will pay very little in taxes. If your income is high, you will pay more. That is how the system works. You can find all sorts of tax credits and deductions to reduce the amount of taxes you owe. That is perfectly legal and it is called TAX AVOIDANCE. Hiding your income, or giving false information to lower your taxes (or not pay at all) is called TAX EVASION and will earn you an all expenses paid vacation to CLUB FED! DON'T DO IT!!!

I STRONGLY agree w/ you, Jeff...