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05-09-2016
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Activity: 0% Longevity: 51% | | What's the point of high limit accounts if you can only sell up to 20k a year?
PayPal will ask you for SSN to continue using an account if they feel you're going to pass the 20k a year mark, so what's the point of buying these massive limit accounts if you can't even use them to your max potential? I understand some may need high item limit accounts but for everyone else isn't it pointless?
I recently got tired of constantly being asked for SSN after 3 months because I was taking in too much money so decided instead to only purchase 50/5000's and sell $1,250 ish a month. Is that a safe number per month? The only downside is that I'll need about 10-15 accounts to do this and I don't even know if $1,250 per month will still get me limited and have me burning through bank accounts.
Also let's say you start an account in June, can you sell more per month because there's only 6 months left in the year?
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05-09-2016
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Activity: 0% Longevity: 79% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by SOLUNA PayPal will ask you for SSN to continue using an account if they feel you're going to pass the 20k a year mark, so what's the point of buying these massive limit accounts if you can't even use them to your max potential? I understand some may need high item limit accounts but for everyone else isn't it pointless? | Ever hear of an EIN? look into it..... Quote:
I recently got tired of constantly being asked for SSN after 3 months because I was taking in too much money so decided instead to only purchase 50/5000's and sell $1,250 ish a month. Is that a safe number per month?
| Again, look into EIN's. Quote:
The only downside is that I'll need about 10-15 accounts to do this and I don't even know if $1,250 per month will still get me limited and have me burning through bank accounts.
| Can't have your cake and eat it too.
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05-09-2016
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Activity: 0% Longevity: 96% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year?
paypal's request is not limited to just the SSN.
As suggested by MM78 you should consider using EINs. | The Following User Says Thank You to GreenBean For This Useful Post: | |
05-09-2016
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Activity: 100% Longevity: 83% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year?
And spread sales SOLUNA - multiple accounts help.
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05-09-2016
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Activity: 0% Longevity: 51% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by GreenBean paypal's request is not limited to just the SSN.
As suggested by MM78 you should consider using EINs. | Cool, I will! Would you say $1,250 per month is a safe number?
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05-09-2016
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Activity: 0% Longevity: 51% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by rsot And spread sales SOLUNA - multiple accounts help. | Yup, that's what I'm currently doing. Used to only have 2 accounts but I'm slowly building. Would you say $1,250 a month will help me avoid the SSN request?
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05-09-2016
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Activity: 0% Longevity: 52% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by SOLUNA Yup, that's what I'm currently doing. Used to only have 2 accounts but I'm slowly building. Would you say $1,250 a month will help me avoid the SSN request? | That's still too high, if you want to be serious about your business, go EIN way. Why limit the potential of becoming a big time business?
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05-09-2016
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Activity: 17% Longevity: 91% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year?
I actually prefer your approach of selling less per account.
If I have an account with 1000/25000 limits and I sell only $1500 per month I stay well under the radar and when they project my sales for the year it will reach $18,000 so no requests for SSN/EIN.
I operate 35 accounts and this setup works well and not only do I never have to worry about EINs I also accomplish two other things. The first is I dont have to worry about taxes. Add an EIN and you need to report everything you make. The second and more important is the fact I never have to worry about any single account (or even several accounts) going down since I always have plenty of backup accounts running.
__________________ AGED SUPER HIGH LIMIT ACCOUNTS: 10,000/$1,000,000 and 25,000/$500,000 | The Following 4 Users Say Thank You to slokor For This Useful Post: | |
05-09-2016
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Activity: 0% Longevity: 51% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by slokor I actually prefer your approach of selling less per account.
If I have an account with 1000/25000 limits and I sell only $1500 per month I stay well under the radar and when they project my sales for the year it will reach $18,000 so no requests for SSN/EIN.
I operate 35 accounts and this setup works well and not only do I never have to worry about EINs I also accomplish two other things. The first is I dont have to worry about taxes. Add an EIN and you need to report everything you make. The second and more important is the fact I never have to worry about any single account (or even several accounts) going down since I always have plenty of backup accounts running. | Man, I was hoping you'd comment lol. I saw your comment somewhere awhile back on the subject. How long have you been going the $1,500 per month route?
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05-09-2016
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Activity: 0% Longevity: 96% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by SOLUNA Yup, that's what I'm currently doing. Used to only have 2 accounts but I'm slowly building. Would you say $1,250 a month will help me avoid the SSN request? | Totally precious from rsot telling you to sell over mutliple accounts. That was a point you made in your opening post you were doing just that.
I would be inclined to have a lower amount but do realize EIN allows better trading.
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05-09-2016
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Activity: 0% Longevity: 75% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by empirestate That's still too high, if you want to be serious about your business, go EIN way. Why limit the potential of becoming a big time business? | he/she wants to avoid the SS#/EIN request because he/she does not want to pay taxes. Simple.
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05-10-2016
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Activity: 0% Longevity: 60% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by slokor The first is I dont have to worry about taxes. Add an EIN and you need to report everything you make. | Spreading sales across multiple accounts prevents you from having to give PayPal an EIN, which doesn't mean you no longer have to pay taxes...
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05-10-2016
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Activity: 0% Longevity: 60% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by 10968 Spreading sales across multiple accounts prevents you from having to give PayPal an EIN, which doesn't mean you no longer have to pay taxes... | It is good to point out that the IRS law requires all income to be reported. 1099K or not.
Also, a lot of people have a misunderstanding that the IRS can not find all your bank accounts. I can assure you that this is false. They can find them all if the so happened to desire to in the case of an audit or levee.
By all means do whatever you want and feel is best for you, but keep this in mind | The Following User Says Thank You to yankee For This Useful Post: | |
05-10-2016
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Activity: 0% Longevity: 81% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year?
I always recommend using multiple accounts so that eBay cannot shut down 100% of your business in one hissy-fit. Having said that, limiting each to under $20,000 is limiting. Because you not only have to keep your sales under $xxxx per month ($1250 is probably a safe number) but you also cannot have any spikes in your business. If you have spikes, there is a component of their algorithm that takes velocity into account, and you could find the request for a tax-id coming in after less than $10,000 in sales.
Of course, you do not want to set up EIN's for every account, either.
What I do it add an EIN once it looks like the account is going to be a survivor. I order the EIN and then I have almost a year to actually set up the LLC. This is OK according to IRS rules and that way I do not have to waste an EIN and money setting up an LLC for an account that is going to die. If it dies after I get the EIN but before the LLC is set up, I just send the IRS a letter that the LLC was never actually set up because the partners involved could not agree on the specifics of the business. It happens.
That way, all of the rules are followed and you do not have to waste resources.
I am NOT saying that the OP is involved in any sort of tax evasion. But I would caution anyone reading this to NOT use it for such a purpose. Because with the IRS, if you ever have to go up against them, you have THREE MAJOR THINGS going against you:
1) IRS agents see attempts at evading taxes every day. Your clever argument may not turn out not to be so clever after all.
2) The IRS has UNLIMITED RESOURCES to go after you. YOU have LIMITED RESOURCES to defend yourself.
3) They have already heard every imaginable excuse as to why it only LOOKS like you are trying to evade taxes.
It is amazing what lengths people will go to in order to avoid paying their fair share of taxes, usually a minor amount. Maybe you will save $1,000. But when they come after you, the attorney's bills will QUICKLY add up to much more than that. And if you save $1,000 and the result is a 1 year prison sentence, you just bought yourself that prison sentence for less than $3 per day. Anybody's time is worth more than $3 per day, especially while avoiding rape and eating the cheapest slop known to man, not to mention the damage it will do to your family. It simply isn't worth it.
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05-10-2016
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Activity: 0% Longevity: 53% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by jeffweico I always recommend using multiple accounts so that eBay cannot shut down 100% of your business in one hissy-fit. Having said that, limiting each to under $20,000 is limiting. Because you not only have to keep your sales under $xxxx per month ($1250 is probably a safe number) but you also cannot have any spikes in your business. If you have spikes, there is a component of their algorithm that takes velocity into account, and you could find the request for a tax-id coming in after less than $10,000 in sales.
Of course, you do not want to set up EIN's for every account, either.
What I do it add an EIN once it looks like the account is going to be a survivor. I order the EIN and then I have almost a year to actually set up the LLC. This is OK according to IRS rules and that way I do not have to waste an EIN and money setting up an LLC for an account that is going to die. If it dies after I get the EIN but before the LLC is set up, I just send the IRS a letter that the LLC was never actually set up because the partners involved could not agree on the specifics of the business. It happens.
That way, all of the rules are followed and you do not have to waste resources.
I am NOT saying that the OP is involved in any sort of tax evasion. But I would caution anyone reading this to NOT use it for such a purpose. Because with the IRS, if you ever have to go up against them, you have THREE MAJOR THINGS going against you:
1) IRS agents see attempts at evading taxes every day. Your clever argument may not turn out not to be so clever after all.
2) The IRS has UNLIMITED RESOURCES to go after you. YOU have LIMITED RESOURCES to defend yourself.
3) They have already heard every imaginable excuse as to why it only LOOKS like you are trying to evade taxes.
It is amazing what lengths people will go to in order to avoid paying their fair share of taxes, usually a minor amount. Maybe you will save $1,000. But when they come after you, the attorney's bills will QUICKLY add up to much more than that. And if you save $1,000 and the result is a 1 year prison sentence, you just bought yourself that prison sentence for less than $3 per day. Anybody's time is worth more than $3 per day, especially while avoiding rape and eating the cheapest slop known to man, not to mention the damage it will do to your family. It simply isn't worth it. | You shouldn't be concerned with other people business as far as taxes go. That is their problem lol
But on another note, how do you set up business bank accounts when you get a ein from IRS if you never set up the LLC? Dont you have o show the bank paper work?
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05-10-2016
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Activity: 0% Longevity: 60% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by golferman You shouldn't be concerned with other people business as far as taxes go. That is their problem lol
But on another note, how do you set up business bank accounts when you get a ein from IRS if you never set up the LLC? Dont you have o show the bank paper work? |
Jeff was pointing out some facts. I dont think he was telling anyone to do anything.
If you want a checking account for your new company, you must register your company with a state.
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05-10-2016
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Activity: 17% Longevity: 91% | | Re: What's the point of high limit accounts if you can only sell up to 20k a year? Quote:
Originally Posted by SOLUNA Man, I was hoping you'd comment lol. I saw your comment somewhere awhile back on the subject. How long have you been going the $1,500 per month route? | Been doing it for several years now without any issues.
As for what everyone is saying about the IRS and taxes. Yes the IRS has the resources to find any information they want about you BUT we are tiny little insignificant dots on their radar and they'll always prefer to invest their time in pursuing the bigger fish. As long as you do things smart the risk is minimal and even if they do decide to audit you the worse case scenario is hiring a lawyer and a good accountant and reaching a deal with them to get out of the bind - theyre after money first and foremost.
But again - that's just how I look at it and I know many here will disagree.
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