Process of upgrading a paypal account to a business account with LLC and EIN - eBay Suspension & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > PayPal Talk

PayPal Talk PayPal Forums. General issues related to PayPal.

Reply
 
Thread Tools
  #1  
Old 1 Week Ago
Junior Member
 
Join Date: Feb 2019
Posts: 4
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 17%
Longevity: 2%
iTrader: (0)
Default 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
Reply With Quote
The complete step-by-step guide to get back to selling today!

  #2  
Old 1 Week Ago
bman707's Avatar
Subscribed [VIP]
 
Join Date: Mar 2019
Posts: 443
Thanks: 28
Thanked 55 Times in 48 Posts
Activity: 97%
Longevity: 1%
iTrader: (0)
Send a message via Skype™ to bman707
Default 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
__________________
Set Your Expectations Higher Then Your Goals

Fresh Secure US/UK/Canada IP Address : https://secure.ipburger.com/aff.php?aff=191
Reply With Quote
  #3  
Old 1 Week Ago
Member
 
Join Date: Oct 2018
Posts: 113
Thanks: 0
Thanked 6 Times in 6 Posts
Activity: 17%
Longevity: 5%
iTrader: (0)
Default 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
Reply With Quote
  #4  
Old 1 Week Ago
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 7,578
Thanks: 1,498
Thanked 2,530 Times in 1,956 Posts
Activity: 94%
Longevity: 28%
iTrader: (2)
Default Re: Process of upgrading a paypal account to a business account with LLC and EIN

Quote:
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).
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.

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

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

Last edited by phaz0rz; 1 Week Ago at 07:43 AM.
Reply With Quote
The Following User Says Thank You to phaz0rz For This Useful Post:
rsot (1 Week Ago)
  #5  
Old 1 Week Ago
Subscribed [VIP]
 
Join Date: Apr 2012
Posts: 21
Thanks: 11
Thanked 2 Times in 2 Posts
Activity: 16%
Longevity: 57%
iTrader: (1)
Default 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
Reply With Quote
  #6  
Old 1 Week Ago
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 7,578
Thanks: 1,498
Thanked 2,530 Times in 1,956 Posts
Activity: 94%
Longevity: 28%
iTrader: (2)
Default Re: Process of upgrading a paypal account to a business account with LLC and EIN

Quote:
Originally Posted by MaggieMae View Post
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
Yes, of course they are.

The only difference is the 1099k has an EIN for a tax ID instead of a SSN.
__________________
Reply With Quote
  #7  
Old 1 Week Ago
Junior Member
Threadstarter  
 
Join Date: Feb 2019
Posts: 4
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 17%
Longevity: 2%
iTrader: (0)
Default 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.

Quote:
Originally Posted by phaz0rz View Post
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.
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
Reply With Quote
  #8  
Old 1 Week Ago
Member
 
Join Date: Jul 2018
Posts: 1,752
Thanks: 113
Thanked 147 Times in 128 Posts
Activity: 94%
Longevity: 6%
iTrader: (0)
Default Re: Process of upgrading a paypal account to a business account with LLC and EIN

life is so godamn complex!!!!!!
I need strong aspirins
Reply With Quote
  #9  
Old 1 Week Ago
Member
 
Join Date: Jul 2018
Posts: 1,752
Thanks: 113
Thanked 147 Times in 128 Posts
Activity: 94%
Longevity: 6%
iTrader: (0)
Default 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?
Reply With Quote
  #10  
Old 1 Week Ago
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 56,970
Thanks: 4,543
Thanked 6,924 Times in 6,309 Posts
Activity: 100%
Longevity: 76%
iTrader: (7)
Default Re: Process of upgrading a paypal account to a business account with LLC and EIN

Quote:
Originally Posted by agent006140 View Post
life is so godamn complex!!!!!!
I need strong aspirins
Or strong aspkins?
Reply With Quote
  #11  
Old 1 Week Ago
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 7,578
Thanks: 1,498
Thanked 2,530 Times in 1,956 Posts
Activity: 94%
Longevity: 28%
iTrader: (2)
Default 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.
__________________
Reply With Quote
  #12  
Old 1 Week Ago
Senior Member
 
Join Date: Jan 2015
Posts: 476
Thanks: 239
Thanked 88 Times in 53 Posts
Activity: 16%
Longevity: 35%
iTrader: (0)
Default 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.
Reply With Quote
  #13  
Old 1 Week Ago
bman707's Avatar
Subscribed [VIP]
 
Join Date: Mar 2019
Posts: 443
Thanks: 28
Thanked 55 Times in 48 Posts
Activity: 97%
Longevity: 1%
iTrader: (0)
Send a message via Skype™ to bman707
Default 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
__________________
Set Your Expectations Higher Then Your Goals

Fresh Secure US/UK/Canada IP Address : https://secure.ipburger.com/aff.php?aff=191
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Question about upgrading to PayPal Business account and EIN and DBA LoZ78 eBay Discussion! 1 05-23-2018 06:28 PM
Upgrading to business account Versace1212 PayPal Talk 0 07-19-2016 10:36 AM
Paypal upgrading business account I can't seem to even login without ssn? astralman PayPal Talk 0 05-21-2016 04:20 PM
S Corp Upgrading to an Business account on paypal Stealthzadar eBay Discussion! 1 09-21-2015 05:55 PM
Paypay limited account...upgrading to business account will solve nothing shyaam7 PayPal Talk 14 04-17-2008 05:56 PM


Aspkin Group

All times are GMT -5. The time now is 11:27 AM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts