limited company to get back on ebay?

[Mr UK]

Has anyone used a limited company to get back on selling on eBay? If so, can they please explain their setup/ how it works.

I have a family member with different address, name etc who says I can set up a limited company and have them as the only director, so ebay can't see me on the companies house register and link me to the account and suspend me

Thanks

[Hank]

Why the need for a third thread, you've already had answers on one of your others.

[Mr UK]

This question is more broad, and asking for people that have used a limited company to get back on ebay to share their experiences. How did they go about doing it,

My last question was more related to legal structure with de facto directors.

[JamesNorth101]

Yep it can be done but usually only under your own details. If you family member is OK with it and understand the taxes and their liability why but but you need to go to talk to accountant for more details on the set up

[Mr UK]

Originally Posted by JamesNorth101

Yep it can be done but usually only under your own details. If you family member is OK with it and understand the taxes and their liability why but but you need to go to talk to accountant for more details on the set up

Yes thank you, just wondering how you'd go about doing it with your own details? If you were recently suspended personally a few months ago (with managed payments signed up)

[JamesNorth101]

Right but that isn't your plan bud

Please go and speak to an accountant for the structure you need to use

[Hank]

As above, go see an accountant, you'll want one anyway if you go down the Limited Company route.

To show your respect and appreciation for your family member you'll take them too so their legal obligations are clearly spelt out so they go into it with their eyes open, if anything goes wrong it's them that will bear the brunt of the authorities.

[Mr UK]

Originally Posted by Hank

As above, go see an accountant, you'll want one anyway if you go down the Limited Company route.

To show your respect and appreciation for your family member you'll take them too so their legal obligations are clearly spelt out so they go into it with their eyes open, if anything goes wrong it's them that will bear the brunt of the authorities.

Good advice, I would follow this. I have another possible scenario is like your opinion on:

my OTHER idea, for how to get back selling on eBay after being banned recently.:

My idea is to get a family member with new address, name etc no links to me (who has already given me their consent) to set up a limited company, then set up a company ebay account from that. Then once ebay and managed payments is all verified, shortly after have my family member resign as director and beneficial owner, and have me put onto the company as director and beneficial owner at companies house , but not notify or change anything with the ebay account.

Do you know if you need to notify ebay of new directors and stakeholders after you have created a limited company ebay account and got managed payments and everything verified?

I'm sure you are supposed to notify ebay of director and stakeholder changes, but would they find out if you don't tell them. Would they 1 day surprisingly hit you with the: we need to verify all of your current stakeholders request one day in the future...

Surely the only way that ebay would know is if there is a change on the companies house register, or if they are doing routine ID checks. Is this something that you know they do?
Thanks very much for help

[murdered_by_ebay]

actually it is better to open a usual ebay account and upgrade to LTD later down the line. in general business accounts are for more difficult to open

[Hank]

Originally Posted by murdered_by_ebay

actually it is better to open a usual ebay account and upgrade to LTD later down the line. in general business accounts are for more difficult to open

No it's not, indeed business accounts are easier to open and keep alive if done correctly.

They're going down the Limited Company route because they do not want their family member to have any personal responsibilities or financial implication, duly avoided by them being a salaryless Company Director.

If I was in OP's shoes and had a family member willing to help there's no way I'd ask them to open a personal/private seller account which can never be transferred into my name - all the tax implications would be theirs. Madness.

[Hank]

Originally Posted by Mr UK

Do you know if you need to notify ebay of new directors and stakeholders after you have created a limited company ebay account and got managed payments and everything verified?

Are you supposed to tell them, yes you are. Will you tell them, of course you won't.

[Mr UK]

Originally Posted by Hank

No it's not, indeed business accounts are easier to open and keep alive if done correctly.

They're going down the Limited Company route because they do not want their family member to have any personal responsibilities or financial implication, duly avoided by them being a salaryless Company Director.

If I was in OP's shoes and had a family member willing to help there's no way I'd ask them to open a personal/private seller account which can never be transferred into my name - all the tax implications would be theirs. Madness.

Couldn't of said it better haha. It's awesome my family member is letting me sell in their name, but I don't want them to be liable for taxes, or legal. Not that anything should happen as I'm selling basic generic products, but best to play it safe.

[murdered_by_ebay]

ebay are highly suspicious of business accounts as they offer higher selling volumes and commercial selling so there is greater room for abuse

ltd. company does not protect from liability or taxes. it is an urban legend , in fact it only protects if no law was violated , any violation of laws transfers liability to company officers as well if it is pursued through civil or criminal courts and of course identity of everyone officially involved must be revealed to ebay as well so they can still see who is behind which company , the same applies even more to adyen

[Hank]

Originally Posted by murdered_by_ebay

ebay are highly suspicious of business accounts as they offer higher selling volumes and commercial selling so there is greater room for abuse

Wrong. Ebay are highly suspicious of private sellers who ring up for limit increased to peddle their new wares. They are less suspicious of business accounts because they tend to operate more formally and offer a higher level of accountability.

ltd. company does not protect from liability or taxes. it is an urban legend , in fact it only protects if no law was violated , any violation of laws transfers liability to company officers as well if it is pursued through civil or criminal courts and of course identity of everyone officially involved must be revealed to ebay as well so they can still see who is behind which company , the same applies even more to adyen

You're getting confuse between private Limited Companies and public. There's no 'urban legend' just cold hard facts.
Anyway, for now we have to assume OP is going to operate within the law and ensure their family member never has to answer to the authorities for any criminal matter. That's why they were advised to get an accountant to ensure all regulatory requirements are met. Best money they'll spend.

But we are agreed at the point of creation, the Limited Company, its Director(s)/PSC's and it's bank account will be required by ebay and adyen at the point of selling account creation. No biggies, I've done it many times.

[Mr UK]

But we are agreed at the point of creation, the Limited Company, its Director(s)/PSC's and it's bank account will be required by ebay and adyen at the point of selling account creation. No biggies, I've done it many times.[/QUOTE]]

Yes definitely. At the point of creation of the ebay account ebay and adyen will definitely be asking for all information and ID for the directors and PSCs.
But the thing I've got to find out is, will they find out if a change the directors in a few months time, after the account is all verified ; )
(My family member resigns and I become 100% legally liable director )

I'm wondering If ebay/adyen really do checks after initially getting the account verified, because I've seen other sellers that are registered limited companies, but have had their companies dissolved over a year ago! And are still selling. Seen some Amazon sellers do it to
(I'm pretty sure this is illegal btw...)

[rsot]

Originally Posted by Mr UK

I'm wondering If ebay/adyen really do checks after initially getting the account verified, because I've seen other sellers that are registered limited companies, but have had their companies dissolved over a year ago! And are still selling. Seen some Amazon sellers do it to
(I'm pretty sure this is illegal btw...)

They can check based on the circumstance, sure...

[Mr UK]

Originally Posted by rsot

They can check based on the circumstance, sure...

What do you think are those triggering circumstances?

[murdered_by_ebay]

adyen are obliged to check , it is the same thing as with banks

[Mr UK]

Yes definitely, but just wondering what is the triggering cause to make a check, if it's a routine yearly thing for example, or what

[SaiJin]

Originally Posted by Mr UK

Yes definitely, but just wondering what is the triggering cause to make a check, if it's a routine yearly thing for example, or what

It can range from a random bot check to your activities on eBay that flags something.

We don't know for sure the exact stuff , so we can only test and guess and do our best to make the best decisions.

It'll always be a cat and mouse game

[Hank]

Originally Posted by Mr UK

Yes definitely, but just wondering what is the triggering cause to make a check, if it's a routine yearly thing for example, or what

There's no triggers, it is happening literally 24/7/365 with the AI bots and API arrangements they all have.

I recently decided to voluntarily wind up a Limited Company so sent the relevant paperwork to Companies House. Within days I has a letter from Barclays telling me my account would be closed as soon as the company was closed.

Also added someone to another Limited Company as a PSC and about a month later Wise were on to me asking for details.

Folk need to stop thinking that there's a room of people randomly trawling account looking for changes, there isn't, it's machine driven and if a change/link is made which they're interested in they'll find it and usually pretty sharpish.

[rsot]

Originally Posted by Hank

Folk need to stop thinking that there's a room of people randomly trawling account looking for changes, there isn't, it's machine driven and if a change/link is made which they're interested in they'll find it and usually pretty sharpish.

Right on - auto-triggers in effect