How to bypass the 20k limit on a stealth account

[vettefever17]

Originally Posted by yankee

yes. In all reality Paypal will tax limit the account much ahead of that.

WAAAAY before 25k if that helps your answer. I would say under 10k with close to 175 transactions.

[yankee]

Originally Posted by vettefever17

WAAAAY before 25k if that helps your answer. I would say under 10k with close to 175 transactions.

It all depends on the price of your items. If you are selling $500+ items, it can be over 20K SOMETIMES. BUt normal is 120 ish items if you sell slowly and 17K if you sell higher dollar items with a restriction right at or just over 20K

[xtyle]

How about in this scenario;

My accounts are all 1,000/25,000 or more but they are all still ramping up.
We are close to the holidays and by the time we are there each account probably has 50-70 items sold, that leaves me only about 80-100 items to sell in the holidays per account.

Would it be better to just outsell the limit (because of holiday) and pay Tax?
If I want to go the pay Tax route, can I retroactively register my business next year?

For example, if I have an eBay account with person name Laurence Tis, can I register a business named Laurence Tis Trading LLC (even though my name is not Laurence) and claim that eBay account for tax filing?

[xtyle]

Originally Posted by vettefever17

WAAAAY before 25k if that helps your answer. I would say under 10k with close to 175 transactions.

The Paypal tax limiting thing, is that something Paypal will give notification of or is that something we stealth users have to calculate ourselves?

[mike316]

Originally Posted by empirestate

No need to bypass, just sell 18k each for every account you want to build.

This is the best option IMO, multiple accounts are the way forward.

[yankee]

Originally Posted by xtyle

How about in this scenario;

My accounts are all 1,000/25,000 or more but they are all still ramping up.
We are close to the holidays and by the time we are there each account probably has 50-70 items sold, that leaves me only about 80-100 items to sell in the holidays per account.

Would it be better to just outsell the limit (because of holiday) and pay Tax?
If I want to go the pay Tax route, can I retroactively register my business next year?

For example, if I have an eBay account with person name Laurence Tis, can I register a business named Laurence Tis Trading LLC (even though my name is not Laurence) and claim that eBay account for tax filing?

You are required by law to pay taxes on income. What the heck does the 1099k have to do with taxes? There is not even a place on any tax form to add the 1099k. A 1099K is only a gross total of funds that were processed by a credit card by paypal on that one account. It really is nothing more than a very tiny tool for the IRS to catch dishonest people a few years down the road. Your 1099K is LESS THAN your income no matter what.

The only issue you should be seeing is if the account is good enough to add an EIN to or not. If the answer is no, then open more accounts.....

This forum is not a group of accountants here to serve your desire to hide money from the IRS. It is only about how to keep selling

[xtyle]

paying tax is fine.
I was referring the complication to pay tax for a 1099 that's under a different name than my own. So it is not about avoiding paying tax itself.

[yankee]

Originally Posted by xtyle

paying tax is fine.
I was referring the complication to pay tax for a 1099 that's under a different name than my own. So it is not about avoiding paying tax itself.

what is complicated? you are withdrawing to your checking account in your name or your business right? Nothing complicated about that.

now in order to get a 1099K, you MUST provide paypal with the tax identification number and it must match the name on the account. That is why we create businesses and upgrade to business and add the EIN that matches our business.

[xtyle]

hmm...sounds like I have to provide Paypal the correct EIN before the end of the year if I go that route.

Ok, real question, if my Paypal name is Laurence Tis and I just register an LLC named Laurence TIS LLC and provide that EIN to Paypal? Is that good enough?

Originally Posted by yankee

what is complicated? you are withdrawing to your checking account in your name or your business right? Nothing complicated about that.

now in order to get a 1099K, you MUST provide paypal with the tax identification number and it must match the name on the account. That is why we create businesses and upgrade to business and add the EIN that matches our business.

[yankee]

create your company name anything you want.....
Feed My Cat INC
My Cat Pees On The Floor A Lot LLC
R.I.C. Realty Trust
XMPLSDIGNOCNSN LLP
Buck and Doe Down You Go Enterprises Incorporated
Internet Liquidations Specialists Limited Liability Company
Daren's & Donald's Limited Liability Partnership

Just a few ideas

[xtyle]

So all Paypal cares for is the EIN not the company name?

[yankee]

Originally Posted by xtyle

So all Paypal cares for is the EIN not the company name?

You lost me.

You UPGRADE TO A BUSINESS ACCOUNT. You then change the name to YOUR COMPANY NAME and add your EIN.

If you go to the IRS website, get an EIN and create a company, then change your paypal to that company name and EIN, what does not match?

Where are you getting confused?

[MM78]

[xtyle]

Ah I didn't know have to change Paypal name.

What about eBay account. Do I change to business or not?

I still intend to run multi accounts but I am also interested in an actual business just so you know

Originally Posted by yankee

You lost me.

You UPGRADE TO A BUSINESS ACCOUNT. You then change the name to YOUR COMPANY NAME and add your EIN.

If you go to the IRS website, get an EIN and create a company, then change your paypal to that company name and EIN, what does not match?

Where are you getting confused?

[yankee]

Makes no difference to ebay but sure you can.

[xtyle]

understood

[vettefever17]

The cliff notes to your question that Yankee has pointed out is the following:

1. Search your state of choosing to file your EIN in for an LLC name. This can be any name you can fathom.
2. Go to IRS and get the EIN. You can get one per day any business day of the week.
3. Simply click to upgrade to a business account under Paypal. Then add the number through the screens. You can even leave the name the same. They simply want the EIN to report to the IRS. And the IRS only cares you claim the 1099 form paypal sends them for you llc/ein number information.
4. It is simple as that. You dont have to go changing information on ebay and paypal. Each agency (IRS and Paypal) dont overlap except the number itself.
5. As for filing for you LLC through a state, it is different with each state. You usually have a several month to a year grace period. Some are more expensive than others to do the court processing.

As an accountant, I would highly recommend paying your taxes. The IRS does not play.

[ScottieBoi]

Just save yourself the trouble. Spread it out. I run 10 accounts myself. Run multiple accounts and keep the sales numbers low on each one. Stay under the radar

[xtyle]

Well
this sucks now I have over 100 active listing and I get the first warning from Paypal that I need to provide EIN or SS.

As I understand it, I shouldn't be listing those same items on another account...and even if I do, I will need to take new pictures, new listing/description, etc...

Here's what I want to do and please let me know if it is ok:
1, get EIN with matching name of a multi-member LLC to my stealth eBay/paypal account.
2, apply this EIN to my Paypal, upgrade to business account.
3, keep selling pass the 200/20k limit to get the 1099 and file tax.

The only thing I need help on is number 3, since the eBay name is not real, will IRS/Paypal have issue with 1099 if only the business name is the same for both eBay/Paypal?

[slokor]

Originally Posted by xtyle

Well
this sucks now I have over 100 active listing and I get the first warning from Paypal that I need to provide EIN or SS.

As I understand it, I shouldn't be listing those same items on another account...and even if I do, I will need to take new pictures, new listing/description, etc...

Here's what I want to do and please let me know if it is ok:
1, get EIN with matching name of a multi-member LLC to my stealth eBay/paypal account.
2, apply this EIN to my Paypal, upgrade to business account.
3, keep selling pass the 200/20k limit to get the 1099 and file tax.

The only thing I need help on is number 3, since the eBay name is not real, will IRS/Paypal have issue with 1099 if only the business name is the same for both eBay/Paypal?

I believe when you upgrade to a business account you need to enter a business name. This business name needs to match the name on the EIN. This means you wont have any issues getting the 1099. Its paypal who issue it - not ebay.