What About Taxes?

[ajgoldie]

Hey guys, I plan on converting my stealth accounts to business accounts when the time comes, but I'm a bit confused about something.

In the Stealth Book, in the "Provide EIN" section, Aspkin says:

"If you get the EIN and comply with the Tax ID requirement. If/when you go over the 20k/200 transactions and they send you a 1099k at the end of the year. It has the PayPal owners name on the account not the business name. So keep that in mind. This is where using your real name or nickname comes in handy...!"

I read in another (recent) thread that it is best to use random, common names instead of nicknames because Paypal would catch on when they see so many accounts with similar nicknames.

But, if I use random names, they will show up on my Tax forms at the end of the year? Will this create problems?

Thanks for any help you can give.

ajgoldie

[vogeltron]

Originally Posted by ajgoldie

But, if I use random names, they will show up on my Tax forms at the end of the year? Will this create problems?

Yes, you will eventually run into issues with the IRS.

[empirestate]

You better use your legit info when dealing with taxes.

[rsot]

Financial professional consultation is in order

[ajgoldie]

Originally Posted by empirestate

You better use your legit info when dealing with taxes.

Okay thanks for the tip. So I should start out with nicknames and I'll be fine? Paypal won't get hip to the stealth scheme? I read somewhere that Nicknames are no good anymore.

[yankee]

You can use you real name if you want.

[rsot]

Just for Friday nostalgia:

YouTube

YouTube

A great Disney flick.

[ajgoldie]

Originally Posted by yankee

You can use you real name if you want.

Maybe there's something I'm not understanding here. You mean I should use my real name multiple times when creating my paypal/ebay accounts? Or do you mean, when filing my EINs I should tell the IRS my real name and then my business name- assuming they won't share my real name with paypal.

[rsot]

You don't use real name when creating pp/eb accounts - stealth names are used.

[yankee]

Originally Posted by rsot

You don't use real name when creating pp/eb accounts - stealth names are used.

Sure you can...

[yankee]

Originally Posted by ajgoldie

Maybe there's something I'm not understanding here. You mean I should use my real name multiple times when creating my paypal/ebay accounts? Or do you mean, when filing my EINs I should tell the IRS my real name and then my business name- assuming they won't share my real name with paypal.

100% of my big EIN accounts are in my real name. Of course every other detail is different such as address, telephone number, etc...

It makes things like having to data base check really easy. When they say they can not find you, you then say, "I recently moved" and then they will look up your previous address in the data base and of course you pass all the questions.

If you want to grow big account really fast, this is a great method.

[newjerseymax]

A DBA will come in handy at this point... I actually have EIN's that say

(Insert Corporation Name)
DBA: (Insert Stealth Name)

It does say "DBA" on the EIN which is still officially filed in my real name....

Used it to do my taxes for 7yrs no problems...

[ajgoldie]

Originally Posted by newjerseymax

A DBA will come in handy at this point... I actually have EIN's that say

(Insert Corporation Name)
DBA: (Insert Stealth Name)

It does say "DBA" on the EIN which is still officially filed in my real name....

Used it to do my taxes for 7yrs no problems...

Okay, thank you newjerseymax! I think that makes sense.

So If my pp/eb stealth name is John Smith...
When I get the 20k notice from paypal, I will register (using my real credentials) with the LA County Clerk for a DBA ("John Smith")

Then I will register (using my real credentials) with the IRS for an EIN and tell them my Store Name (will eventually use this name when apply for LLC) and my DBA: "John Smith".

Then I have to file for an LLC ("Store Name" LLC) before tax season?

Is that right?

[yankee]

You wants to get your EIN at least a few weeks before adding it to paypal. It can take up to 6 weeks before the IRS registered the EIN in records but usually a couple weeks.