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Correct, you will be paying taxes and reporting income, assets, deductions on each one with your ssn. Dont get more than one or even one of them for actually unles you know everything there is to know about what is involved. you will be held as a business from that time on. its no joke so you need to get your stuff straight. If you were flying along making money you need to realize your profits are going to be lower due to the quarterly tax payments you will be making

I think there will be a lot of trouble with the IRS and online banking reporting laws this year. People seem to be throwing around the topic of EIN numbers of a way to outsmart Ebay and Paypal. They do not realize the depth of what they are doing. IRS is going to go after all these people and I bet there will be a lot of tax evasion and ID theft. I understand what you have been saying, but unfortunately, I don't think everyone is listening. I have a feeling that people believe you have multiple EIN numbers they can have that many accounts. Each one will stay under $20,000 therefore, none will be reported. Hmmm...not a good situation :suspicious:

It will catch up with each and every one of them. Like I said in another post I have a good reason to beleive that this 20k thing is a test to see what will and wont work for the IRS. I would not doubt that gets dropped to 5k soon thereafter.

To get and fly with multiple EIN's you have to do a lot of work. I have contacted business attorneys, tax consultants, etc on what all is involved with mine and I can tell you now that these people have no idea what is headed their way.

Anyone that sells thousands of dollars on ebay on the 1st year of their EIN probably has something to even worry about. The IRS knows that most business models take years to make a profit. Showing huge profit from day one will only make you look like you have had the business for a while but are just now starting to file. You have to know what you are doing on these and its not as easy as many are thinking.

Yeah its easy to get one and post to paypal but that is the easy part of it. The legal and hard part is the IRS.

You are right with starting a business and making a huge profit. That is a definite way of triggering an audit. IRS gives people 3 years worth of "write offs" with a loss. After that, you definitely have some explaining to do if you keep going and use huge deductions to avoid taxes. Since I have joined the forums, I have been really surprised at the amount of people who don't know what they are doing. :eek:

Right I know the IRS gives you one EIN and you can use it as DBA how many businesses you have but right now it's under XXXX and if I give it to them as XYZ will they be able to trace it back to XXXX?

If you start using an EIN, they will watch you more carefully to see how your business is doing. If you trigger an audit, they will ask for everything, including all your bank accounts. They have ways of finding stealth bank accounts. If you do not turn over ALL the info, they will get you for tax evasion. Then you are looking at doing time with high fines, including all the taxes you skipped out on. Be VERY careful with an EIN.

haha
 

haha done this quite a few times.... hey... you have to go to the nice warm locations to find the best deals! =)

Yeah and all those expensive dinners for clients that I am trying to get. :eek:

But what if the address on your business dba one was used for my personal account, which was suspended? Will they link the two?

you can form one business and have the stealth accts act like ebay assistants for the business, that way you can report properly at the end of the year to uncle sam. so i guess make one legit paypal business acct, then just billpay to the bank acct name all the funds to the business bank acct in a couple of weeks.....

Poor old KingRay - all those expences - let me know if you need any help with them :lol: