Need help on paypal upgrade to business account

[392845481]

Hello
I am a new guy here looking for help. After reading eBay Stealth, i still have some question about my paypal. My account total selling is around 17000.It's only 3000 dollar away from the 200/20000 mark. So after i upgrade to the business account. How do i report my revenue to the IRS, i mean how exactly do it? Any one have experience can guide me through step by step?Is there any way i can minimum my tax? Any suggestion will be grateful. Thanks

[MM78]

1st. Your going to need to file for an EIN

2nd. When you Upgrade you then add your EIN to your PayPal, also note that PayPal is also asking for the last "4" digits of your SSN. The way around that is to add the last "4" of your EIN.

3rd. Once you get to the 200/$20,000 limit PayPal will send you the appropriate docs to your email for filing your Taxes.

Is there any way i can minimum my tax?

Yeah...spread sales across multiple accounts.

[392845481]

Originally Posted by MM78

1st. Your going to need to file for an EIN

2nd. When you Upgrade you then add your EIN to your PayPal, also note that PayPal is also asking for the last "4" digits of your SSN. The way around that is to add the last "4" of your EIN.

3rd. Once you get to the 200/$20,000 limit PayPal will send you the appropriate docs to your email for filing your Taxes.

Yeah...spread sales across multiple accounts.

Thanks for your help. So when i get the paper from paypal. Do i have to tell IRS exactly what i am selling on ebay? Or just a category will be enough? I cross multiply category, clothes, electric, etc.

[solefoodbk]

Just remember at the end of the day as long as you pay your taxes, in reality IRS could careless what you sell. Obviously if it was illegal then yea thats a different story but its not like if you got hired at a restaurant they would ask you what type of food you serve same thing with selling.....

Unless you get audited.

[MM78]

Originally Posted by 392845481

Thanks for your help. So when i get the paper from paypal. Do i have to tell IRS exactly what i am selling on ebay? Or just a category will be enough? I cross multiply category, clothes, electric, etc.

No, the IRS doesn't care in particular...what might matter is if you buy merchandise with a Resellers Permit....but I think that has to do with State Taxes.