Single member or multi member LLC for US MP

[stealthnorris]

So I'm going to be using single member LLC's for my eBay Stealth account.

I was wondering if eBay sends my 1099 to IRS, will it bounce back if it had mismatched names on the "owner" of the LLC account on eBay vs the actual name thats on the single member LLC?

Or are they not able to check that data?




I read that a multi Member LLC is also an option but I'm guessing that will get complicated when filing for taxes. A single member LLC seems like the easiest way, as long as the 1099 wouldn't bounce back from mismatched names.

[rsot]

Quite a few posts on LLCs in this forum to read around and wait for other members to post if they choose to do so

related thread: http://www.aspkin.com/forums/paypal-...lzzz-help.html

[phaz0rz]

No. It will be a match because it would have your LLC name.

[stealthnorris]

Originally Posted by phaz0rz

No. It will be a match because it would have your LLC name.

I am seeing in other posts that single member LLC's will be taxed as a sole proprietor since there is only one owner of the LLC.

and the way around this loop hole is a multi member LLC?

Some say the 1099 will be triggered as a mismatch since it won't be matching the single member LLC owner which eBay MP asks for the information of.

[phaz0rz]

I'm talking from experience. I only have single member LLCs and for the last 6 years my 1099's have had my LLC names on them. Single member LLC's are only "taxed like sole proprietors" in the sense that they do not file their own tax return and all profits get passed to the personal tax return of the single owner. Multi member LLC's are more complex and have to file their own tax return + each member of the LLC would have to include their share of the LLC's profits on their personal taxes.

[stealthnorris]

Originally Posted by phaz0rz

I'm talking from experience. I only have single member LLCs and for the last 6 years my 1099's have had my LLC names on them. Single member LLC's are only "taxed like sole proprietors" in the sense that they do not file their own tax return and all profits get passed to the personal tax return of the single owner. Multi member LLC's are more complex and have to file their own tax return + each member of the LLC would have to include their share of the LLC's profits on their personal taxes.

Do you think any of this will change with MP?
You need to have a beneficial owner listed in eB MP when making it a business account, and the owner of the eBay account won't match since it is under a family members name. my single member LLC will be under my name.

I hope this time around when the MP 1099's are sent for the first time that it won't trigger any mismatch names. I know with paypal this was fine and was never an issue

[solefoodbk]

All mine are single member LLC. If they send information to IRS it will come back as your business name always. If you really are worried (like I was) set up a parent company, then have a subsidiary. Therefore legally you aren't the owner of the business your parent company is. There is absolutely no way for any marketplace to trace your name legally if you set it up that way because your SSN isn't connected to the business only the parent company EIN is.

[stealthnorris]

Originally Posted by solefoodbk

All mine are single member LLC. If they send information to IRS it will come back as your business name always. If you really are worried (like I was) set up a parent company, then have a subsidiary. Therefore legally you aren't the owner of the business your parent company is. There is absolutely no way for any marketplace to trace your name legally if you set it up that way because your SSN isn't connected to the business only the parent company EIN is.

Thank you
This was helpful!

[yankee]

You need to talk with an accountant and preferably a business CPA. A single member LLC cant get around paying self employment taxes where most all other companies can. Single member LLC is the most taxed type of company and unless you are not really making any money but get a tax return, almost certainly isnt the most tax friendly option. But every person and situation is different.

If you search on youtube, you will find tons of videos explaining why single member LLC are not preferred these days especially with all the new taxes on small businesses coming up but like I said, every situation is different.

[stealthnorris]

Originally Posted by yankee

You need to talk with an accountant and preferably a business CPA. A single member LLC cant get around paying self employment taxes where most all other companies can. Single member LLC is the most taxed type of company and unless you are not really making any money but get a tax return, almost certainly isnt the most tax friendly option. But every person and situation is different.

If you search on youtube, you will find tons of videos explaining why single member LLC are not preferred these days especially with all the new taxes on small businesses coming up but like I said, every situation is different.

In your case, what type of LLC do you recommend for stealth?
Do you prefer the multi member or the S-Corp?

[yankee]

Originally Posted by stealthnorris

In your case, what type of LLC do you recommend for stealth?
Do you prefer the multi member or the S-Corp?

Stealth is irrelevant. Any entity works.

For me, it is all about taxes. S-Corp is almost almost always the best method for small business UNLESS you dont make much profit, trying to get away with extreme home office write-offs or have hard assets attached such as Real estate. As a single member LLC you have virtually no advantage over a sole proprietor as for taxes or liability. Add a quick 15% for self employment tax.... BUT you can get away with more write offs on a personal level IF you dont make much money.

Everything I am talking about is for internet business. Not real estate or other hard assets. I want to make that clear.

[stealthnorris]

Originally Posted by yankee

Stealth is irrelevant. Any entity works.

For me, it is all about taxes. S-Corp is almost almost always the best method for small business UNLESS you dont make much profit, trying to get away with extreme home office write-offs or have hard assets attached such as Real estate. As a single member LLC you have virtually no advantage over a sole proprietor as for taxes or liability. Add a quick 15% for self employment tax.... BUT you can get away with more write offs on a personal level IF you dont make much money.

Everything I am talking about is for internet business. Not real estate or other hard assets. I want to make that clear.

S Corp vs LLC (Should you choose an S-Corp status?) - YouTube

S Corp vs LLC (Should you choose an S-Corp status?) - YouTube

great video explaining it to me

[GOODMANS]

You can try