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Old 01-17-2020
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Default Tax reporting question for LLC/EINs when under 200/$20,000

So the question is since they do not report for normal accounts unless both are conditions are met, over 200 transactions and $20,000 in the year.

If you had to convert to business due to over 200 transactions but still under $20k do they send 1099 for the tax year or no because both conditions not met?

Anyone running LLCs/EINS but under the $20k per year.

Thanks for the help
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  #2  
Old 01-17-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

what is your question?

Some states have much much lower requirements. Example is MA at $600 CA accounts often get 1099ks for a few thousand dollars(not always), IL, Vermont have very low thresholds as well.

2018 I received a 1099k in MA for $36,000 in only 9 transactions for a very specific example.

Why pay all those filing fees for an EIN if you are not using them?

I really dont k now what you are asking. You seem to be beating around the bush or dont understand the point of using companies.
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Old 01-17-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

I think he is asking the Fed 1099K,not state
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Old 01-17-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by yankee View Post
what is your question?

Some states have much much lower requirements. Example is MA at $600 CA accounts often get 1099ks for a few thousand dollars(not always), IL, Vermont have very low thresholds as well.

2018 I received a 1099k in MA for $36,000 in only 9 transactions for a very specific example.

Why pay all those filing fees for an EIN if you are not using them?

I really dont k now what you are asking. You seem to be beating around the bush or dont understand the point of using companies.
Paypal and ebay only send 1099 when you sell more than 200 transactions AND $20k so if you sell more than 200 transactions but less than 20k on a LLC account will they bother with the 1099.

I couldnt find that answer anywhere....figured there are people who have already seen the answer to my question.

Im lost on your response
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Old 01-17-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Yes Federal ...not worried about state...if they dont send federal than no carry to state so no issue
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Old 01-17-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

why dont you go to IRS website and look up LLC tax reporting
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by agent006140 View Post
why dont you go to IRS website and look up LLC tax reporting
Because its a Paypal policy not an IRS policy
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by agent006140 View Post
why dont you go to IRS website and look up LLC tax reporting

NOTE: Link to Paypal information make sure you have the right VPN selected and right account logged in

https://www.paypal.com/us/smarthelp/article/FAQ729
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Old 01-18-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

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Originally Posted by robbcarpdm View Post
Because its a Paypal policy not an IRS policy
No, it is IRS law. ALL credit card processors follow the same law. Stripe, Ayden, Paypal, authorize.net, amazon, square, merchant services ALL have to follow the IRS law plus each states threshold laws.


If it was up to paypal, they would never have this huge burden.
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Old 01-18-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Here is the LAW.
https://www.irs.gov/businesses/under...ur-form-1099-k
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Old 01-18-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by robbcarpdm View Post
.

Im lost on your response

Im lost in your lack of question.

What is it you are trying to accomplish?

If you use an company and upgrade your accounts, why would you care about the reporting? That is the entire point of the EIN.
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Old 01-18-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by robbcarpdm View Post
NOTE: Link to Paypal information make sure you have the right VPN selected and right account logged in

https://www.paypal.com/us/smarthelp/article/FAQ729
Most of us do not use a VPN and know how to open links. But thanks anyways Mom.
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Old 01-18-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by robbcarpdm View Post
Paypal and ebay only send 1099 when you sell more than 200 transactions AND $20k so if you sell more than 200 transactions but less than 20k on a LLC account will they bother with the 1099.

I couldnt find that answer anywhere....figured there are people who have already seen the answer to my question.
He LITERALLY answered your question with a few state-specific examples showing that your information isn't ALWAYS the case.
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  #14  
Old 01-18-2020
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

Quote:
Originally Posted by robbcarpdm View Post
Yes Federal ...not worried about state...if they dont send federal than no carry to state so no issue
If they create a 1099-k based on state requirements, it also gets sent to the IRS seeing as it is an IRS form and passes through the IRS to each state.

If you are trying to cheat on gross income, unless you live in a tax free state such as WY, TX etc.... The state is much more aggressive than the IRS.
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Default Re: Tax reporting question for LLC/EINs when under 200/$20,000

if you live in a state with no income tax,then they come after you for sales tax.
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