Hi guys, I'm new here. I bought the ebay Stealth Book and have finished it. According to the book, we should register ebay accounts and paypal as many as as possible to deal with bad things like suspension or limits cut down stuff like that.
And for paypal, we have to use them rotatory, a US based paypal will be asked for tax if we sell more than 200 items or 20K one year, so here is the question: Why should we need high limit ebay account, like up to 500 or 1000 selling limit/month since we are not going to sell more than 200 items for one account?
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Hi guys, I'm new here. I bought the ebay Stealth Book and have finished it. According to the book, we should register ebay accounts and paypal as many as as possible to deal with bad things like suspension or limits cut down stuff like that.
And for paypal, we have to use them rotatory, a US based paypal will be asked for tax if we sell more than 200 items or 20K one year, so here is the question: Why should we need high limit ebay account, like up to 500 or 1000 selling limit/month since we are not going to sell more than 200 items for one account?
You can always get an EIN from the Government, and use it to remove the 200/20k limit. However then you will receive a 1099 and have to pay taxes.
PayPal will report to irs in the form of a 1099k if you have over 200 transactions AND you make over 20,000. There is a big BUT...
That does not mean PP will not ask for verification prior to those numbers. For example, I sell low cost items (~3.95) and I have been asked to verify my tax info before hitting the 200 transaction mark. They do it based on Projected sales.ive had it happen months into an account, and my most recent account was asked 4 days into selling.
May I know the way you dealt with it after paypal ask for tax info? If you have multiple accounts, it seems a headache problem about this sort verifications.
It's also 200 items AND 20k so you could sell 1000 items for 10k or 100 items for 100k.
Not exactly the case. All my accounts sell items that are less than $4 and PayPal has been asking me to verify the account before the 200 transaction mark. It can be on projected transactions/sales.
For example. Sell a bunch the first weeks of January and pp will assume every week would look like this and ask you to verify.
If you are just starting out forget about these limits 20K, 50K. Don't get your hopes up. $100 the first month, $300 the second month, $500 the third month, etc... No need to buy any of these high limit accounts, buy one with $1000 limit it is enough if you don't want to do it yourself.
FYI, the IRS won't issue an EIN to a business entity in China. An out of country business earning money in the US will need to get a TIN and the process is lengthy and complicated.
Yeah I try to stay below $1000/month, and below 12 items a month. Seems to be fine. If you break $1000 in one month it has almost always guaranteed me the PP verification emails
A question About High Limits Accounts 
