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Process of upgrading a paypal account to a business account with LLC and EIN
 

I have a few questions about this process.

First, if I upgrade the account to an business account with the LLC/EIN will the account holder be responsible for taxes? (for example, account is in person x's name but the LLC is in my name and I'm the sole member).

Second, is it better to upgrade the current paypal account or to create a new paypal account.

Third, is there a limit on how many LLC business accounts a person can hold?

Thanks

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

I would upgrade your Paypal and add EIN you will be responsible for the taxes since the business will be in your name and you can apply for another EIN every 24 hours

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

If this is for stealth then what if they ask for docs

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

You're liable for the taxes. The stealth name on the account becomes irrelevant once you upgrade it to business. When 1099's go out they will have your EIN. Single member LLC's are pass through entities which means they don't file their own tax return. The profits of your EIN are "passed through" to your personal tax return on a schedule C form, so your stealth business will be a part of your personal taxes each year.

In my opinion it's better to upgrade aged personal accounts. If you build up a history before you upgrade you reduce the chances of rolling reserves or "release amounts" being applied to your business account. Plus, you get a chance to see if the account will be randomly limited in the first month before wasting an EIN/LLC.

No. Like bman said you can get 1 EIN every 24hrs from the IRS. I think that limit is intended for businesses that do EIN applications for people.. but still you can have as many as you want. 500 LLC's isn't outside the realm of possibility.

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

Hi, I have not had a business account before with EIN/LLC. Are business accounts made with EIN/LLC subject to the same 1099 tax rules, over $20k/200 transactions then Paypal will kick out a 1099?
thx

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

Yes, of course they are.

The only difference is the 1099k has an EIN for a tax ID instead of a SSN.

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

thanks for the info everyone. Def some good stuff here.

When I upgraded the account to an LLC paypal asked for the business owners name and their last 4 digits of the SSN. They also requested confirmation of the LLC's EIN number and physical address in the form of a document.

I have two questions...

First... Does paypal limit people from having multiple business accounts? For example, if I create 500 LLCs where I'm the sole member and organizer, then I'll presumably have to put my Name and last 4 digits of ssn into paypal. Will paypal be ok with this? Does this compromise stealth if the ebay account is in a different persons name (the paypal would be a business account with a business name but would have a different name (my name) attached to it from the ebay account).

Or if we upgrade a paypal account in the ebay account holder's name how will we get around them asking for last 4 digits of ssn?

Second... When paypal asks for the documents showing the EIN and physical address how can we provide this is the paypal account is in a different name than any of the LLC info. For example, my IRS EIN confirmation has the EIN, physical address but it also has my name. Is this an issue? Is it illegal to photoshop my name out for the paypal stealth name instead? What solutions are possible here.

Thanks again for all the info. very valuable

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

life is so godamn complex!!!!!!
I need strong aspirins

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

you sound like an intelligent,educated ,articulate person,there is a shortage of workers in US,why not find a real job,instead of fighting Ebay and Paypal?

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

Or strong aspkins? :)

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

Things have changed a lot recently in regards to upgrading or creating business accounts. I can't give entirely up to date information since I haven't upgraded an account in well over 2 years. But the last time I did one, you were able to get by with putting your EIN for both the EIN and SSN.

If that's no longer a possibility it's still possible to have as many LLC accounts as you want - just not single member LLC's. They're required to ask for your name and SSN since by law you are the only member and all profits will be passed to your taxes. They don't use your SSN on the 1099 - I would guess they're required to get it for accountability.

With multi-member LLC's or any other entity with multiple members they wouldn't ask for personal info since the EIN would be filing it's own tax return.

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

They asked me for a social security card, or a 1099 prepared by a professional, or a paycheck stub showing my social as it was on the account Only my last 4 are on the account so I'm guessing that's all they would need.

Re: Process of upgrading a paypal account to a business account with LLC and EIN
 

I remember the day I would just type in random numbers when asked for ssn and keep going no problem oh how it has changed