Limited Paypal? Taxes?

[Allfor5]

So my paypal is limited after about $4000 in sales.

Lets say about $1000 of those sales are "household items" my own stuff. Untaxable

Lets say the other $3000 were "business items" for profit.

I deposited about $1800 into a bank account from my paypal.

My SSN Is not linked in the Paypal or eBay (Stealth acc)

Should I just let that account relax for now (Its a powerseller) and wait until 2015 (will the limit be lifted since its a new year and new 200/$20,000)?????


I can always make new accounts and sell on those.

Otherwise, should I make an LLC or Sole Proprietor EIN?

[Dmshark25]

It all depends on how you would like to operate your business, some operate with only a couple accounts and form a corporation or LLC and use an EIN FOR tax ID and continue selling

While others spread sales out, over enough accounts that they never get asked for a tax ID

You should probably think about how exactly you want to operate so that your not guessing

You need to be in Control and not rely on whether accounts will reset or not, because things always change and relying on eBay/PayPal will end in failure.

So decide on what u want to do, and if it's only run a couple accounts, than I'd suggest opening a couple businesses and have a tax ID ready to go when paypal asks

Or have enough accounts where you won't be asked for a tax ID, ONLY rely on yourself

[yankee]

Dmshark25 has covered this very well.

New entities can offer significant tax advantages as well as a more robust ebay/pp account but we all know that is not a reliable business in itself.

I like to mix it up these days. I run a slew of hobby ebay accounts selling $1500 or so each month per account and I have some hands off big accounts run by several employees. I like both. They both has significant setbacks and significant advantages.

It depends on the items you are selling as well. If you are selling many one of a kind items several small accounts is very very very easy. If you are selling a few thousand of a singlke item each month than an EIN account or several of them is the most logical solution for that business model.

[SilentHill]

I just spread the risk very WIDEEEE

[elipse]

How many items have you sold and how much each item costs?

[Allfor5]

Originally Posted by elipse

How many items have you sold and how much each item costs?

Ive sold about 120-130 items I would say.

Each is about $15-$30.

[Allfor5]

Originally Posted by Dmshark25

It all depends on how you would like to operate your business, some operate with only a couple accounts and form a corporation or LLC and use an EIN FOR tax ID and continue selling

While others spread sales out, over enough accounts that they never get asked for a tax ID

You should probably think about how exactly you want to operate so that your not guessing

You need to be in Control and not rely on whether accounts will reset or not, because things always change and relying on eBay/PayPal will end in failure.

So decide on what u want to do, and if it's only run a couple accounts, than I'd suggest opening a couple businesses and have a tax ID ready to go when paypal asks

Or have enough accounts where you won't be asked for a tax ID, ONLY rely on yourself

So pretty much if I leave my current account alone and not file anything at all nothing will happen since my SSN isn't on my paypal (but my bank still has about $1800 deposits from paypal) which can be considered "household items"?

[Mrjame]

Originally Posted by Allfor5

Ive sold about 120-130 items I would say.

Each is about $15-$30.

You should make Sole Proprietor EIN for selling many one of a kind items several small accounts

[GreenBean]

Originally Posted by Mrjame

You should make Sole Proprietor EIN for selling many one of a kind items several small accounts

do tell more about your skills in doing this.

Why do you think it will work?

I do not think it is suitable.

But do tell the forum your side.

We all might learn something from you.