200/20k limit

[Fuhrer84]

Most of people here are talking about how you control never hit the 20k a year but never seen before how you control 200 transaction per year that is most of times came first and you can sell 200 items for 5k for exapmle so i need to forming LLC any ways control 20k a year or not.

Is that right or i don't understand something?

[Hakar]

Originally Posted by Fuhrer84

Most of people here are talking about how you control never hit the 20k a year but never seen before how you control 200 transaction per year that is most of times came first and you can sell 200 items for 5k for exapmle so i need to forming LLC any ways control 20k a year or not.

Is that right or i don't understand something?

If i understand correctly.
For a stealth account dont exeed the limit of 200 sales or 20k usd within 1 year and your safe. Is that right?

[Fuhrer84]

Originally Posted by Hakar

If i understand correctly.
For a stealth account dont exeed the limit of 200 sales or 20k usd within 1 year and your safe. Is that right?

Right but if you hit only one of them paypal will goning to report you but you must apply your EIN so my question is what most people do is control both or only 20k?

[branesergen]

The threshold is 200 items AND 20k in sales before they issue the 1099k. However they can request the info at any time they think you might hit it.

[phaz0rz]

Originally Posted by Fuhrer84

Right but if you hit only one of them paypal will goning to report you but you must apply your EIN so my question is what most people do is control both or only 20k?

If you only hit 200 or $20,000, and not both, Paypal doesn't send a 1099 but they will limit your account until you provide a tax ID, because they legally can't let you sell more without a tax ID.

They require a tax ID if you hit one of the thresholds because they are required by law to issue a 1099 if you hit both thresholds. Make sense?