Quick EIN/LLC Question

[StealthLannister]

Hi there,

I have figured out most of the forming EIN/LLC aspect of stealth.

But I have one more question which I have found to have some conflicted opinions in the forums. Just wanted to ask for other people's insight.


I have created a few EIN's via IRS.gov website, although I did enter "1" when the application asked for "How many members are on this LLC?"

Which made it into a single member LLC, and this was before I read up that it may be an issue when filing for taxes since they may be inclined to ask for your name and not just the Business Name.

*I read that multi-member LLC may be the best for stealth after I have done this*

Will I be having an issue with my Single-member LLC?
(I have already input the EIN to a stealth PayPal, therefore I cannot just ditch the EIN and make a new one)

Thank you!

[dallis]

You've got so much confusion in your questions I don't know how to begin to respond.

it may be an issue when filing for taxes since they may be inclined to ask for your name and not just the Business Name

Who are 'they'? EB doesn't know or care about the difference between a single or multimember LLC.

[StealthLannister]

Originally Posted by dallis

You've got so much confusion in your questions I don't know how to begin to respond.

it may be an issue when filing for taxes since they may be inclined to ask for your name and not just the Business Name

Who are 'they'? EB doesn't know or care about the difference between a single or multimember LLC.

"They" would either be PayPal or IRS

If they ask for proof of identity for the stealth account/name when sending the tax form, I cannot provide that.

That is my understanding of what will happen if I apply for a single member LLC over a multi-member LLC when reading other posts regarding this topic in this forum

[yankee]

forget everything you think you may know about ebay/paypal/irs relationship as of right now.

It goes like this, PAYPAL asks the IRS if the BUSINESS NAME(that you provide) matches the EIN number(you provide) and the IRS responds with a YES or NO.

IF it does not match, sometime next year before some day in December you have to fill out a form with the correct details. If you dont, they suspend the account. If you do, but it does not match, they suspend the account.

The big difference in LLC stype is taxes. Example, single member LLC can not get out of 15% self employment taxes no matter what. Multi member can be structured in a way that you dont have to pay the 15% self employment taxes. Next on the list is how protected from law suits and then the ability to get loans or raise capital.

Structure of a company has nothing to do with paypal but 100% based on your financial needs. Non of us can help you because we do not know your situation. We dont know your income from this new entity, or other income, if you have any assets and domestic liabilities or what your potential of getting sued is, etc....

[StealthLannister]

Originally Posted by yankee

forget everything you think you may know about ebay/paypal/irs relationship as of right now.

It goes like this, PAYPAL asks the IRS if the BUSINESS NAME(that you provide) matches the EIN number(you provide) and the IRS responds with a YES or NO.

IF it does not match, sometime next year before some day in December you have to fill out a form with the correct details. If you dont, they suspend the account. If you do, but it does not match, they suspend the account.

The big difference in LLC stype is taxes. Example, single member LLC can not get out of 15% self employment taxes no matter what. Multi member can be structured in a way that you dont have to pay the 15% self employment taxes. Next on the list is how protected from law suits and then the ability to get loans or raise capital.

Structure of a company has nothing to do with paypal but 100% based on your financial needs. Non of us can help you because we do not know your situation. We dont know your income from this new entity, or other income, if you have any assets and domestic liabilities or what your potential of getting sued is, etc....

Ahh I see, thank you so much! This helped cleared my question