Tax ID: Sole Proprietorship or LLC

[LoZ78]

Moderator Please Note: This is not a repeat post so please stop removing it.

I just got a notification from PayPal that I need to submit a Tax ID, and I'm not sure which of these two I should go with.

I'm averaging about $200 per week selling digitally delivered goods on eBay and I'm well over 200 transactions, but I'm not planning to get anywhere near $20K so I can avoid that 1099 Tax Form.

This is not a stealth account. Both my eBay and PayPal accounts use my real name, address, and phone number.

Based on my situation, Which EIN type should I go with?

[SneakyTurtle]

It is a repeat post because this exact question has been asked by other members at least 4 times before you and there are replies in their threads too. You should use search before creating a new topic, because the answers you seek may already be there.

[LoZ78]

Originally Posted by SneakyTurtle

It is a repeat post because this exact question has been asked by other members at least 4 times before you and there are replies in their threads too. You should use search before creating a new topic, because the answers you seek may already be there.

It is not a repeat post. My situation is unique to me and I would like to get advice based on my unique situation and not anyone else's.

[rsot]

Welcome to the forum - all the best as you master stealth

For tax q's, you should seek professional financial advice.

1. Is your account limited?

2. PP really doesn't like digital goods so you might be low on luck for reinstatement if so...

[LoZ78]

Originally Posted by rsot

Welcome to the forum - all the best as you master stealth

For tax q's, you should seek professional financial advice.

1. Is your account limited?

2. PP really doesn't like digital goods so you might be low on luck for reinstatement if so...

Not limited yet. I've just received the notification that if I don't provide a Tax ID, they will limit my account.

[yankee]

This is a question for your accountant and/or attorney only. Non of us know what your other income is, how many and types of assets you have. Non of us know what risk you are taking by selling your items and how much corporate separation you need from your own self.

It is a tax issue, not a asking the open forum what type of company you need. TYPICALLY a sole proprietor and single member LLC have an added 15% self employment tax but maybe in your case, you actually get a tax return. Non on us can help you in this case because we dont know your finances and personal life to even come up with any tax plan for you.

[LoZ78]

Originally Posted by yankee

This is a question for your accountant and/or attorney only. Non of us know what your other income is, how many and types of assets you have. Non of us know what risk you are taking by selling your items and how much corporate separation you need from your own self.

It is a tax issue, not a asking the open forum what type of company you need. TYPICALLY a sole proprietor and single member LLC have an added 15% self employment tax but maybe in your case, you actually get a tax return. Non on us can help you in this case because we dont know your finances and personal life to even come up with any tax plan for you.

Alright well I'll give some more details for you that could maybe help you understand my situation better. I am a broke 19 year old college kid with NO income and I do not plan on paying taxes for the digitally delivered goods I'm selling on eBay. That's the reason I'm staying under 20K so PayPal doesn't report it to the IRS. As such, I have no CPA either. I did not know that I would eventually need to provide PayPal with a SSN or EIN to continue selling my goods on eBay, so I am trying to get an EIN number as quickly as possible to provide PayPal with so that I don't get limited. I just need to pick the best EIN, Sole Proprietorship or LLC, so that I can get back to selling. I have contacted PayPal to let them know I am in the process of getting an EIN to prevent them from limiting me, and they told me that they would give me time to get one. So my question for you is which EIN should I get?

[ebaystealth1974]

Don't phuck with the IRS.

[SaiJin]

Or better yet, just get a free advice from your CPA, they'll tell you exactly what you need to do.

But do get a CPA that deals with ebay and amazon sellers.

[sellingnoob]

why will you sale digital delivered goods, which is kinda bad anyways ( paypal hates it) under your real name?

go stealth.

its hard to give you advise on tax issues if you are not stealth

[Kajunrook]

i THINK YOU CAN ONLY HAVE ONE SOLE PROPRIETERSHIP WITH USA

[phaz0rz]

Originally Posted by Kajunrook

i THINK YOU CAN ONLY HAVE ONE SOLE PROPRIETERSHIP WITH USA

That's correct.