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  #1  
Old 03-15-2015
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Default Amazon and LLCs

So, here's the question..when setting up the LLC, would Amazon link my address to my ghost account since I'm using my home address when filing an LLC and that address is already on a banned account? Basically, does Amazon just verify business name with LLC or name, LLC, and address? The long and short of it is that to register a LLC costs $175 here in MD and I don't want to screw it up and be out that money as soon as Amazon links it in less than 24hrs! Oh, and one last thing. Once I get the LLC done, do I need to get the EIN from the IRS for Amazon as well or is it just the LLC information?

Last edited by jcyoung71; 03-15-2015 at 08:32 AM.
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  #2  
Old 03-15-2015
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Default Re: Amazon and LLCs

Quote:
Originally Posted by jcyoung71 View Post
So, here's the question..when setting up the LLC, would Amazon link my address to my ghost account since I'm using my home address when filing an LLC and that address is already on a banned account? Basically, does Amazon just verify business name with LLC or name, LLC, and address? The long and short of it is that to register a LLC costs $175 here in MD and I don't want to screw it up and be out that money as soon as Amazon links it in less than 24hrs! Oh, and one last thing. Once I get the LLC done, do I need to get the EIN from the IRS for Amazon as well or is it just the LLC information?
You only need the EIN from the IRS for the LLC.

Amazon will want the EIN, you just give them the same one that you obtained for the LLC.

When verifying the LLC, the IRS receives the LLC NAME and the EIN and matches on THEM ONLY. The IRS does NOT verify addresses. They also do NOT correct any information. They just return a code of "match" or "no match".

ONE CAVEAT: The LLC must be a multi-member LLC. If it is a SINGLE MEMBER LLC then the EIN would be in YOUR REAL NAME and not the LLC name.
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Old 03-16-2015
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Default Amazon and LLCs

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Originally Posted by jeffweico View Post
You only need the EIN from the IRS for the LLC.



Amazon will want the EIN, you just give them the same one that you obtained for the LLC.



When verifying the LLC, the IRS receives the LLC NAME and the EIN and matches on THEM ONLY. The IRS does NOT verify addresses. They also do NOT correct any information. They just return a code of "match" or "no match".



ONE CAVEAT: The LLC must be a multi-member LLC. If it is a SINGLE MEMBER LLC then the EIN would be in YOUR REAL NAME and not the LLC name.

Jeff, why would the IRS give a new EIN to single member LLC if it will match it so the member instead of the LLC? I know it is needed to open bank accounts etc but once we give amazon/PayPal the business name and EIN, don't they just submit that info and it returns match/no match ONLY back to them? And it would be a match since the EIN is registered under than business name.

I know that if they look deep enough and ask IRS they will most likely get to the single member name but for our purposes in theory a single member LLC would work yes or no?

It is more risky than multi member LLC but it would work?
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Old 03-16-2015
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Default Re: Amazon and LLCs

YES it works for single member LLCs. The EIN only goes as far as the LLC. The tax consequence is substantial at 15% so I personally would not use a single member LLC.

I like corps and in all reality the very insignificant amount of paperwork is worth the thousands of dollars it saves me. It is a few filings a year and a few meetings. Literally less than one hour a year in paperwork for small ebay/amazon stuff with a single shareholder. No big deal at all. I have someone else record it personally and pretty much unless someones sues you and wants to attach your personal assets no one would ever know if you even did this reports...
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Old 03-16-2015
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Default Re: Amazon and LLCs

The issue is, when applying for the EIN, if you check the box for single member LLC, then the LLC is considered a "disregarded entity". In the case of a disregarded entity, the LLC does not have to file a tax return, the profits are simply reported as income on your individual return. Therefore, the IRS uses YOUR NAME and the EIN to tie it to your tax return. When I tried this, it would not verify using the LLC name at all. When I called to ask about this, they told me the name verified in this instance is the INDIVIDUAL NAME. Indeed, this is what the IRS letter confirming the EIN says. I have no idea how yankee got around this.

Do your research or ask a tax professional if it will work for you. I have not known this to work for anyone.
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Old 03-16-2015
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Default Re: Amazon and LLCs

Thanks for the info guys! I try to use multiple member LLC but can't find enough partners and don't want to have that many open LLC with same partners...so single member ones could help if it works.

As far as taxes go, I use these single member LLC on accounts where I know I won't reach the 20K amount (only needed to sell more than 200 low $$ items) so nothing will be reported to IRS, I will just report the earnings as personal income since it is pass-through.

Jeff, but when you report the taxes this way on personal return you're using your personal SSN not the EIN of the LLC or something I'm missing?

The only way I can think of for this working is that LLC will match the EIN, but EIN is also tied to you but since amazon/PayPal try to match the LLC name it should work.

If it would fail then there wouldn't be a need to get a EIN for a single member LLC and IRS would tell you to just use your SSN or personal EIN instead. That's my logic of why it should work but I can't be sure. I

have a hard time believing all members here have only opened multi member LLC for PayPal and ebay, I would think most have opened single member too since it's easier and I haven't seen many reporting that it hasn't worked. Maybe it has something to do on how it's entered in IRS when EIN is requested and also how the company or business account is entered in amazon/PayPal.
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Old 03-16-2015
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Default Re: Amazon and LLCs

It works. Most every member on this forum who has an EIN has a single member LLC. I have never heard of it not working for anyone including myself.

EIN for ALL LLCs, Trusts, Corps, partnerships, etc... stops at Entity as far as ebay, amazon, stealth is concerned.

An S-corp is also a pass through entity and that also works..

Pass through entity is a tax issue not a stealth/ebay/amazon issue.

Sole Proprietorship is the risky EIN entity and even then that would need to be investigated a bit more than passing ebay/amazon/stealth request to the IRS.

Last edited by yankee; 03-16-2015 at 11:22 PM.
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Old 03-18-2015
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Default Re: Amazon and LLCs

What's the cheapest fee to register a LLC? And where and/or how?

Thanks..
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Old 03-18-2015
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Default Re: Amazon and LLCs

So here's the new situation, I registered the multimember LLC. I registered for the partnership LLC for the EIN. Went back to Amazon and filed out the tax interview. It came back and said that the info doesn't match! I used the stealth name and address and the correct LLC name and EIN. The stealth name had a different city and zip (fairly close though). Does that need to match the EIN? I also did it all within 10 min of each other. Is there a time frame I need to wait for the IRS database to update before I send the info to Amazon? Another thing that struck me as odd. Even though I filled out the info for multipartner LLC and EIN, it never asked me for anyone else's info, just me (the contact), is this normal or should I have did something that required the other person's info as well? All this mumbo jumbo is really getting confusing
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Old 03-18-2015
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Default Re: Amazon and LLCs

Quote:
Originally Posted by jcyoung71 View Post
So here's the new situation, I registered the multimember LLC. I registered for the partnership LLC for the EIN. Went back to Amazon and filed out the tax interview. It came back and said that the info doesn't match! I used the stealth name and address and the correct LLC name and EIN. The stealth name had a different city and zip (fairly close though). Does that need to match the EIN? I also did it all within 10 min of each other. Is there a time frame I need to wait for the IRS database to update before I send the info to Amazon? Another thing that struck me as odd. Even though I filled out the info for multipartner LLC and EIN, it never asked me for anyone else's info, just me (the contact), is this normal or should I have did something that required the other person's info as well? All this mumbo jumbo is really getting confusing
How long did you wait to add the EIN to amazon? The IRS takes a few week to update.
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Old 03-18-2015
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Default Re: Amazon and LLCs

As soon as I finished the EIN process online at the IRS website, it gave me my EIN number. So, I went right into Amazon and completed the interview process.
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Old 03-18-2015
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Default Re: Amazon and LLCs

It takes a few weeks usually.
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Old 03-18-2015
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Default Re: Amazon and LLCs

Well that sucks. Amazon sent a letter saying I have 30 days to send them the correct info or I'm suspended. In the meantime, the account is in a status that I can get my money but I can't add inventory and all my inventory is not selling:(
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Old 03-18-2015
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Default Re: Amazon and LLCs

Congratulations jcyoung71
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Old 03-18-2015
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Default Re: Amazon and LLCs

....actually, correct that, I'm back in business! But I still have 30 days to submit my tax info or THEN I'll be suspended. So I guess I'll give it a few weeks and then submit it again.
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Old 03-18-2015
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Default Re: Amazon and LLCs

Quote:
Originally Posted by jcyoung71 View Post
....actually, correct that, I'm back in business! But I still have 30 days to submit my tax info or THEN I'll be suspended. So I guess I'll give it a few weeks and then submit it again.
Correct!

Amazon should now allow you to sell, edit, add, etc...
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Old 03-21-2015
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Default Re: Amazon and LLCs

Has anyone ever re-opened a new stealth with a DBA under their LLC account that was closed by Amazon?


I have 2 DBA's under my LLC that I opened to test the waters but right after I opened them, amazon suspended our LLC account.
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Old 03-21-2015
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Default Re: Amazon and LLCs

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Originally Posted by Superfly101 View Post
Has anyone ever re-opened a new stealth with a DBA under their LLC account that was closed by Amazon?


I have 2 DBA's under my LLC that I opened to test the waters but right after I opened them, amazon suspended our LLC account.
So same EIN number. Will be banned if I am understanding you correctly.
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Old 03-22-2015
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Default Re: Amazon and LLCs

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Originally Posted by imozee View Post
What's the cheapest fee to register a LLC? And where and/or how?

Thanks..
I recommend this company that helped me to decide and guided me. Northwest Registered Agent. 509-768-2249
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Old 03-22-2015
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Default Re: Amazon and LLCs

Quote:
Originally Posted by yankee View Post
YES it works for single member LLCs. The EIN only goes as far as the LLC. The tax consequence is substantial at 15% so I personally would not use a single member LLC.

I like corps and in all reality the very insignificant amount of paperwork is worth the thousands of dollars it saves me. It is a few filings a year and a few meetings. Literally less than one hour a year in paperwork for small ebay/amazon stuff with a single shareholder. No big deal at all. I have someone else record it personally and pretty much unless someones sues you and wants to attach your personal assets no one would ever know if you even did this reports...
I have an S corp for ebay but it is not that easy. I had to explain why I did not pay for disability insurance and workman compensation. I don't because I am self employed ut I had to write numerous letters. They were trying to fine me $22.000. Also the accountant told me it costs less to prepare the tax returns with an LLC because you attach the income of the LLC to yours. With the S corporation you have to file two returns.
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Old 03-22-2015
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Default Re: Amazon and LLCs

Quote:
Originally Posted by PALAUPACIFIC View Post
I have an S corp for ebay but it is not that easy. I had to explain why I did not pay for disability insurance and workman compensation. I don't because I am self employed ut I had to write numerous letters. They were trying to fine me $22.000. Also the accountant told me it costs less to prepare the tax returns with an LLC because you attach the income of the LLC to yours. With the S corporation you have to file two returns.
I will never be self employed(except for the stupid single member LLC that I use for a home based business/expenses that will never make money) and I have no issue filing things correctly so fines don't occur.

I have no issue paying for things when it saves me HUGE tax money in the long run. A good adviser legal and accounting is key and preferably more than one of each. But everyone's situation is different.
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