Forum

EIN Number
 

I have PayPal account hit the $6000 in a few weeks PayPal asking me to provide tax id number should I upgrade it to a business account and can I provide a previous EIN that I used before on my first PayPal account

Re: EIN Number
 

You cannot use previous EIN, because it will link you to banned account, so do not upgrade if you plan on using same number.

Re: EIN Number
 

But PayPal asking me to provide tax I'd number or they will limit my account what should I do

Re: EIN Number
 

Get a new EIN number

Re: EIN Number
 

EIN numbers are not hard to get. When your account starts doing numbers you are going to be asked for SSN or EIN. It's best to have a few EIN numbers already available. If you don't provide this info its best to just slow down on that account and give it a break from selling.

Re: EIN Number
 

the name have to be match with an EIN number or it doesn't matter I'm thinking to upgrade it to business and provide a new EIN Number

Re: EIN Number
 

No. The name on the EIN does not have to match the name on the PayPal account.

Re: EIN Number
 

The name on the EIN does not have to match the PP info...

UNLESS:

You go over the 20K annual amount in sales, which it looks like you will at 6K in a few weeks.

THEN PP sends a 1099 to the IRS and it won't match your EIN and the gig is up and the account is toast, EB & PP both.

Re: EIN Number
 

I'm unsure about when PayPal sends the 1099. Is it when you make 200 sales OR $20k in sales, or its 200 sales AND $20k in sales? For instance if I made 700 sales totaling in $10k, will PayPal be sending a 1099?

Also can an LLC have multiple EIN numbers? I clicked around the IRS application and see that you can specify an existing business as a responsible party. Does this assign an additional ein to my existing business, replace my existing business' ein, or creates a new llc with my existing business as the owner?

Re: EIN Number
 

PP sends the 1099 after the end of the year if you take in more than 20K.

The rest of these questions should be made to a professional accounting or tax person.

Re: EIN Number
 

Can someone confirm if this is accurate? I was under the impression that the name doesn't have to match the EIN no matter what.

Re: EIN Number
 

Dallis is correct. Unless you go over 20k. I was assuming you had no interest in going over 20k.

Re: EIN Number
 

I was under the impression that only the business names have to match, and PP can only see the actual name on the account if they do a manual review.

Re: EIN Number
 

Okay let me get this straight... so you can use an EIN with your real name and link it to a paypal with a totally mismatched name (mentioned in the book) to bypass the 200 items limit. And the way to get around a mismatched 1099 is to NEVER let your paypal accumulate over 20k a year so they never send you a 1099, right? That way you just add the income yourself when doing your taxes.

I can easily hit 200 items quickly since my items are very low priced, but 20k, that'll take longer since I don't sell $100 items (200 items x $100/item = $20k)

Re: EIN Number
 

Nobody said you can bypass the demand for the EIN or SSN.

PP can and will ask for the EIN or SSN and you must provide that info or they will shut down the account.

After you provide the EIN or SSN they only send the 1099-K if you then take in more than 20K in a calendar year.

A mismatch name issue doesn't really apply until ( in my experience ) until the IRS looks at the paperwork and finds the names don't match.

Re: EIN Number
 

AMAZON is 200 items and 20k. Never heard paypal doing 200 items.

DONT GET ATTACHED TO ONE ACCOUNT. This is one reason to have multiple. Switch off at around 16k. That way you wont be stressed when you get that email

Re: EIN Number
 

I've gotten two accounts before that asked for the SSN EIN at around 160 sold items from PayPal. Average price of my items is about $15. So that's only around $2400. If you google it (not sure if I can post links here) you will see that everywhere mentions PayPal with their 200 item and 20k limit.

I can normally sell about 40-50 items a day. So does that mean I'll have to switch accounts every 3 days for an entire calendar year? That's over 100 PayPal accounts.

For those of you who already do switch PayPal accounts, the name and address on the PayPal accounts match your info on eBay right? And they all point to the same bank account?

Re: EIN Number
 

I know this is very confusing, so read this carefully:

PP can ask for the SSN or EIN ANY TIME THEY WANT.

PP's stated policy is they ask when EITHER: 1. you approach 200 transactions, OR 2. you approach 20K, OR 3. They think you MAY take in more than 20K.

You can click on the link on the PP site to confirm this. The word they use is OR, not AND.

When they ask give them the SSN or EIN.

Don't worry about the number of transactions after that point, you don't need to worry about transaction count at all ever, just ignore it, it doesn't matter, you can have 19,999 transactions for $1 each, as long as you stay below 20K you won't get a 1099-K.

Remember that the 20K number you keep and eye on is the GROSS amount of anything sent to you. It includes PP fees, shipping charges, everything.

Re: EIN Number
 

From my experience neither the IRS or PP care if the names are mismatched as long as the business name matches. Maybe I just got lucky, I'm curious if there is any definite answers on this. I think only problems you have with paypal is if they do a manual review on your account and see the names don't match.

Re: EIN Number
 

I've had a mismatch bounce back from from the IRS twice so I can assure you they most certainly DO care.

You only risk that if you go over 20K though.

Re: EIN Number
 

Sorry but what do you mean by bounce back?

Re: EIN Number
 

If a 1099-K goes to the IRS and the name on the PP account doesn't match the EIN or SSN the IRS issued EXACTLY, they'll send a notice to PP, who will in turn limit your account until you resolve the issue.

That's what I mean when I say the IRS will bounce it back - they'll reject it.