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Paypal EIN/ Tax Feedback/Question
 

The $20k/200 transaction deal really hurts me. I sell two different types of products and they are both low in dollar and high in transaction amount. I'm trying to do things on a large scale as I have about 30 stealth acccounts- all having 500-unlimited.

I just recently started trying to pick things up and know that sooner or later I'm going to run into the paypal tax information road block. So I need some feedback from guys who have been doing this for a while.

What do I do about taxes? If each of these accounts has to supply an EIN I will have to file an LLC for each stealth. And while the initial filings aren't expensive, the filings/reports at the end of the year will add up to be a nice chunk.

Is this the way to do it or is there something that I am missing? Any help would be greatly appreciated.

Re: Paypal EIN/ Tax Feedback/Question
 

I believe pp pays much more attention to $ amount than amount of transactions so youre probably good going over 200 transactions but i wouldnt mess with the $ amount .....please get someone else to verify this i do nopt want to tell you something and not have it be verified by others!
Cheers!!!

Re: Paypal EIN/ Tax Feedback/Question
 

I'm pretty sure it's 200 transactions- I could be wrong... My question is more directed to the tax side of things... like how to set things up legally.

Re: Paypal EIN/ Tax Feedback/Question
 

Its the price to pay if you want to do stealth.

Re: Paypal EIN/ Tax Feedback/Question
 

Why not have a few main accounts with higher limits? You should have no problem raising the limits if you're moving volume + great feedback. Then once you reach your stealth limits add an EIN

Re: Paypal EIN/ Tax Feedback/Question
 

Spread sales over 5+ accounts

Re: Paypal EIN/ Tax Feedback/Question
 

In the U.S. it is rough. Personally I have a main account with EIN that I use as my base since 2010 came into effect. I run many stealth accounts on the side for a rainy day and to just spread things out.

I don't know what kind of products you sell etc. But if you sell enough it probably is best to invest in getting a LLC/Ein to get back on and started with eBay/PayPal.

The biggest advice I can get if you go the EIN/LLC route don't be dumb and push the limits to hard to fast. Its too much time effort and money to get back on. Take it very slow and go out of your way to sell low risk items and ship things fast, lots of pictures, etc. Essentially don't be lazy and cut corners.

Re: Paypal EIN/ Tax Feedback/Question
 

PayPal will limit your account before you reach any threshold for their own protection from the IRS. If you run lots of stealth accounts you simply treat it as income to you. Even if John Doe is the name on the account. You claim as you would anything else. Its simple. What is not simple is having a phake name on an account then getting a Tax ID under your name and getting a 1099k with the phake name on it from PayPal. That would be my cause for concern.

Re: Paypal EIN/ Tax Feedback/Question
 

So put the actual accounts under my real name if I go the LLC/EIN route?

Re: Paypal EIN/ Tax Feedback/Question
 

I was under the impression that if you had a LLC the tax info would all be attached to the business- not the person. Am I wrong?

If that's the case- I have a bit of adjusting to do since 95% of my accounts are under phake names.

Re: Paypal EIN/ Tax Feedback/Question
 

For both previous questions I can't confirm or deny. I have not seen anyone post a true answer. Personally my SSN PayPal was suspended indefinitely in like 2007/08. I came back after the 1099k law in 2011 with an account under my name with different into using stealth principles. I use my one personal EIN allowed as for an individual. Knock on wood, etc. For the past four years it has been fine. Even though my PayPal is a business account with my EIN my 1099k comes with my registered name.

Hope that helps. I have no idea if it is different for LLC on PayPal. It has been 3+ years and no one has confirmed or denied anything to my knowledge.