EIN/Tax ID Question

[Nesie]

I just got the Tax ID request from Paypal

-And my question is .. should I wait until my account gets limited before adding an EIN from my LLC or should I do it right?

-How long do I have before I get limited? depends on how fast I'm selling? I'm not where close to the 200 items and 20k sales; but I guess I got the request based off projected sales.

-What happens if I ignore the tax ID request and keep selling anyways? Obviously my papyal account will get limited; but will I still be able to withdraw money? What happens to my sales on eBay if my buyers can't send me money? Will they not be able to make a purchase in the first place?

Thanks

[Gammzy98]

Originally Posted by Nesie

I just got the Tax ID request from Paypal

-And my question is .. should I wait until my account gets limited before adding an EIN from my LLC or should I do it right?

-How long do I have before I get limited? depends on how fast I'm selling? I'm not where close to the 200 items and 20k sales; but I guess I got the request based off projected sales.

-What happens if I ignore the tax ID request and keep selling anyways? Obviously my papyal account will get limited; but will I still be able to withdraw money? What happens to my sales on eBay if my buyers can't send me money? Will they not be able to make a purchase in the first place?

Thanks

Is the account a stealth account? Since the 200 items and 20K is on a yearly tax basis, it resets in January. I would not keep selling as your PayPal account can get limited. Better off to just leave it alone until January and check then. It may be easier to just create more stealth accounts so you can spread out your sales. I planned on initially doing the EIN but I found it easier to just spread the sales over multiple accounts.

[pirate1122]

Originally Posted by Nesie

I just got the Tax ID request from Paypal

-And my question is .. should I wait until my account gets limited before adding an EIN from my LLC or should I do it right?

-How long do I have before I get limited? depends on how fast I'm selling? I'm not where close to the 200 items and 20k sales; but I guess I got the request based off projected sales.

-What happens if I ignore the tax ID request and keep selling anyways? Obviously my papyal account will get limited; but will I still be able to withdraw money? What happens to my sales on eBay if my buyers can't send me money? Will they not be able to make a purchase in the first place?

Thanks

1. I would suggest not waiting as I once had an experience where I had to call because they would no longer allow me to upgrade to a business account via the internet. You can still add the EIN and just not make the 20k, thereby you would not receive a 1099k from Paypal.

2. I think the limit takes around a week if I recall. It could be a little closer to two (Don't consider this fact). And yes once you are limited, you can't sell anything else. I don't recall whether or not you can withdraw.

3. Lol if buyers can't send money, then sales go down to 0. They will receive some kind of error and they won't be able to pay you so they can't purchase it. usually someone messages me and tells me this.

[dallis]

I also recall a week to 10 days from the date of the notice, if not resolved by then the account will be useless until sometime after Jan 1, 2018, and sometimes a bit longer than that.

[Nesie]

Originally Posted by dallis

I also recall a week to 10 days from the date of the notice, if not resolved by then the account will be useless until sometime after Jan 1, 2018, and sometimes a bit longer than that.

Well you mean if it does get limited, I can just upload an EIN number then right, and resume operations like normal?

Also, does anyone know if I can withdraw money if I got this limit?

[dallis]

Once it is limited you will no longer be able to add the EIN without calling in.

I don't recall when they shut off transfer, but I'm guessing pretty soon.

[pirate1122]

Originally Posted by Nesie

Well you mean if it does get limited, I can just upload an EIN number then right, and resume operations like normal?

Also, does anyone know if I can withdraw money if I got this limit?

Your welcome to explain whatever reason you are hesitating. But take it from someone who waited and waited the first time and had to call in. If you want your life to be a little easier, take 2 minutes ( probably takes less time) and get the EIN. Some suggest waiting a day before using it; I usually add mine to PP the same day without any problems.

If I recall when they first request the EIN, you are still able to withdraw and sell items. Sometime later they limit you, you cannot sell anything else ( It would surprise me if they still allowed you to withdraw but I don't know for sure). Usually at this point you have to call in; not always though.

Again, all of this is crazy easy to do.

[SaiJin]

You cannot do anything with a limited account.

I highly suggest you take care of the tax id right now and strengthen the account NOW.

[gg123]

you could just withdraw you money as soon as it become avail and not add the EIN so worse case if it gets flagged you don't lose money.

[empirestate]

If I were you, I would add EIN to strengthen the account and make more MULA.