Should I go LLC or Stealth

comeon · #1 07-22-2011

Hey all. After going back and forth with ebay and paypal over the past couple months, they finally dropped the hammer and indefinitely suspended my ebay account today from selling.

It had been a while since I sold on ebay (a couple years). I never had a problem with them before so I never even thought to read about using them again. Anyways, in my first couple of days on ebay again I sold about $1500 and quickly withdrew it to my bank account as I always did in the past. Well paypal then limited me and ask for my license, credit card statement and invoice for the products I sold. I was totally legit so I sent it all in. They then tell me I am of too high a risk, blah blah blah...

So now I have a ton of product at my house ranging from $3 - $200 in value. I could get rid of it other ways, but nothing is as fast as ebay unfortunately and I was really excited about starting this again.

So my question is, if I am wanting to get a long term legit account going, what would be my best route? Form an LLC, use my girlfriends info, or go Stealth? I would really like to be legit so if possible I would like to avoid Stealth. I've read that if I want to do a LLC, I should use a name and not my company name. What is the reasoning behind this?

Any input would be greatly appreciated as I am really anxious to get selling again. However, this time around I will start with the small items and work my way up.

JRYAN34 · #2 07-24-2011

u have a lot to learn, buy the book

comeon · #3 07-25-2011

Anyone have any input on this?

yellow0102 · #4 07-25-2011

I would stay away from the LLC unless your very sharp on it. It takes a lot of dedication and time when it comes to taxes and other issues with that. Diffidently stay away from using your girlfriends info, that will turn into a nightmare in the future.

Stealth is the only way in my opinion. Just get the stealth guide, and see what you think

sagarbest · #5 07-26-2011

I would recommend you to go with stealth , LLC makes you look legit and all but still it's lot of work.

GreenBean · #6 07-26-2011

Um, operating an ebay account is hard work regardless of what it is called.
Stealth,
Real info
LLC.

The choice is made on the basis of what will work to make money for a seller and keep ebay appeased.

With changes on an almost daily basis, LLC is more feasible long term especially if a seller intends to have a high turnover.

First Edition · #7 07-26-2011

I can open an LLC online in under ten minutes.

What's so hard about it?

rsot · #8 07-26-2011

Can non-residents open LLCs First Ed.? just wondering

GrannyT · #9 07-26-2011

I have a lot of experience on exactly this and it's something that needs to be done properly to avoid problems further down the line.

Remember EB and PP are only 2 of the problems out there

If you go 'legit' Limited Company you have other issues to deal with - including how and when to bale out.

This needs a lot of thinking outside the box if you cannot be 100% legit.

GrannyT · #10 07-26-2011

Quote:

Originally Posted by rsot

Can non-residents open LLCs First Ed.? just wondering

In the EU anyone can form a limited company

(I think Canadians are banned - especially if they want a %)

comeon · #11 07-26-2011

Thanks for the input everyone. I am feeling an LLC will be better for me. I will be running everything legit (no vero, etc...). The main thing that suspened my other accounts was I opened a third payal account forgetting I already had 2 open previously as well as my dads accounts getting linked (same name and at one time same address).

In Nevada its only $100 for an LLC so its not much of an investment. Going to use Google Voice and a UPS mailbox so no linking there.

The only thing that worries me is I have read in other posts that someday down the line Paypal may ask for a SSN as well as the EIN. There isn't much info on here about corporations or LLC's so I couldn't find the answer about and loopholes or validity about this. Anyone have any experience about that part of it?

First Edition · #12 07-27-2011

Quote:

Originally Posted by GrannyT

I have a lot of experience on exactly this and it's something that needs to be done properly to avoid problems further down the line.

Remember EB and PP are only 2 of the problems out there

If you go 'legit' Limited Company you have other issues to deal with - including how and when to bale out.

This needs a lot of thinking outside the box if you cannot be 100% legit.

If you're a sole owner, there isn't a lot to it. There are taxes, which should be paid anyway. A copy of quickbooks and some licenses and you're good to go.

Rsot, I'm sure canada has websites like legalzoom to open businesses. It's no different than an attorney filing the papers on your behalf, it's just that an attorney will charge 2 grand and with legalzoom or bizfilings it's 400 bucks.

KingRay · #13 07-27-2011

Quote:

Originally Posted by comeon

Thanks for the input everyone. I am feeling an LLC will be better for me. I will be running everything legit (no vero, etc...). The main thing that suspened my other accounts was I opened a third payal account forgetting I already had 2 open previously as well as my dads accounts getting linked (same name and at one time same address).

In Nevada its only $100 for an LLC so its not much of an investment. Going to use Google Voice and a UPS mailbox so no linking there.

The only thing that worries me is I have read in other posts that someday down the line Paypal may ask for a SSN as well as the EIN. There isn't much info on here about corporations or LLC's so I couldn't find the answer about and loopholes or validity about this. Anyone have any experience about that part of it?

I would go through legal zoom no matter what. The paperwork it too much of a hassle and its only like $199 for the good package for the LLC. I would not go with the cheaper one. Then you will have your state fees. Ours is around $200.

When you do that you will be prompted to get the EIN which then just post that with pp since you are going full LLC anyway. I think with the larger pkg on Legalzoom it comes with the stuff for EIN too. either way the EIN can be created within a few minutes online.

First Edition · #14 07-27-2011

I did my first one through legal zoom, but I use incorporate.com for them now.

You don't have to base the the llc in the state you live if you pay for the registered agent service. Most companies are formed in Delaware because of the privacy laws, lack of yearly filing fees, and many other reasons. Legalzoom is the same as bizfilings, or incorporate.com. you can do it yourself in the same amount of time and at a fraction of the cost if you know what forms to file.

KingRay · #15 07-27-2011

Yeah I should have said the other sites as well. I meant a legalzoom type site. All of them are probably fine.

I have actually filed the LLC for a past business on my own and it was a pain. I had to find an attorney, wait for ridiculous amounts of time and had to do all teh running around. Its way cheaper in my case to have legalzoom do it.

This last time it was a breeze with the online service and I dont knwo why anyone would want to tackle it alone. Maybe its easier in some states or something.

As for the Delaware thing, I have seen crack downs on that in the recent years and most of the benefits are not as great as they used to be.

First Edition · #16 07-28-2011

I don't register in DE to get around any laws, it's just cheaper!

All of the sites are the same really, and I agree 100% it's easier to just pay the 200-300 dollars. But if you're on a budget, you can do it yourself. The first time I did it with legal zoom they sent everything in a cool binder with an embosser so I could my seal on stuff. It was pretty sweet, but I dropped like 700 bucks.