Creating a new EIN number?

[Sarah512]

Hi so im trying to know on how to create a new ein number. I already have a EIN as a sole proprietor but you can only have one ein as a sole proprietor. I have already used that EIN on a paypal account. Im unable to reuse that or it will link me. Im trying to check on what is my other option as obtaining a new EIN number. Can somebody please help? Thank you

[phaz0rz]

You'll have to get an LLC EIN this time. It's just as easy as getting a sole prop EIN, except you will also need to file LLC paperwork with a state if you ever want to open business bank accounts.

EIN application page

[Sarah512]

Hi thank you for your reply. So a little confused on how this LLC works since I have never done it before.

If I do an LLC is it the single member LLC?
I already have an EIN as a sole proprietor so will it use the same EIN when creating the LLC?

Once LLC is created will I get a brand new ein so I can use it on the new paypal account?

How many EIN number would I be able to create based on that one LLC?

If I create another selling account and a new paypal account would I be able to create additional EIN based on that same LLC and provide it to paypal for the 2nd account?

I would not need to create a bank account using EIN so which option would I choose?

Do you know how much is the charge based in state TX. Do you know which company would be able to do this for me or am I able to do this myself as well?

Im sorry for tons of questions. Thank you once again!

[phaz0rz]

Alright, here we go. I'll do my best.

1) Single member is the easiest type to use because it's a passthrough entity like sole prop, which means it doesn't file its own tax return and instead reports income through a schedule C on your personal tax return. But it's not the only kind you can use.

2) No, if you use the online application they will not allow you to give your current EIN as the responsible party for your new EIN. An EIN can only be the responsible party for a new EIN if you use a service like legalzoom or you mail in your application. You will have to give your SSN but that has no bearing on stealth or your ability to run accounts with your new EIN.

3) Your LLC is not created when you get the EIN. You get the EIN first from the IRS, then you file articles of organization with whichever state you want your LLC to be registered in to officially form an LLC. You'll need to do both things in order to open business bank accounts.

4) 1 EIN per LLC but you can have as many LLC/EIN pairs as you want. I have 3.

5) No.. you can't reuse any business information. You would have to start fresh with another new EIN/LLC.

6) That's up to you. If you're going to go through all the trouble of forming a legal LLC, in my opinion.. you might as well open a bank account for it too so you can be ready for official business.. or eBay managed payments payouts.

7) It's $300 to form an LLC in texas. I formed all 3 of my LLC's in my very early 20's so I'm sure you could do it on your own as well. First you get the EIN from the IRS application I already linked you to. Use that link specifically. There are tons of services which will offer to get you an EIN for a fee.. but there's no need to pay because it's free from the IRS.

Once you have the EIN you go to your state's secretary of state website, find the forms you need to download to form an LLC, fill them out, sign/scan them or whatever is required, pay the SoS's filing fee, and you're usually good to go within a day.

[Vivandoencolor]

if you feel a bit overwhelemed or do not want to go out due to covid there are a number of website services that can start a business for you..

dont do a sole member llc. if you are dropshiping... not saying you are just you dont want to be legally liable

[peter piper]

Here is some good advice for opening an LLC and getting EINs.

I already have an EIN as a sole proprietor so will it use the same EIN when creating the LLC?

An EIN as a sole proprietor, is still YOU.
All business management is then YOU.
All debits are Yours.
All obligations are YOU.
All liability is YOU.
All lawsuits will be to YOU.

You don't want to be a 'YOU'.
You want to be a 'strawman'.
So open an LLC or LP, and that is your strawman.

ALWAYS get a fresh EIN for each entity you create.
NEVER co-mingle EINs or SSNs (or SINS or BINS - in Canada).
Each MUST be independent and unrelated.

Single member is the easiest type to use because it's a passthrough entity

Never mind about 'easy'.

A single member LLC is YOU.
No protection, full liability, full obligations, etc, see the above statements.
You MUST split the equitable title (Legal term), to remove liability.

You really need an LLC with at least 2 members.
One can be you, and the other can be an entity, such as a corporation, or a trust.
This is the ONLY way you will have liability protection between your personal assets and your business. Creditors can only go after the assets of the business. Nothing else.

Some states have no LLC reporting, and no renewal fees (Delaware, or Nevada come to mind!).

And guess what? - there are no assets!

Your LLC should always be 'insolvent'.
In other words, all your profits should be written off against all your expenses.
You should have more expenses than profit (on paper) always.
That is, all the cash and profits made, should be siphoned out of the LLC, using expenses. Reach Google on how to do this legally.
So there is never anything for unscrupulous people/companies (like Ebay) to steal.

Think like Apple, Google, Microsoft, Amazon, Ebay, Tesla, etc.
They all have not paid a single cent in taxes.
All profits are siphoned off legally.

Also, one or more of the members (or as an entity) can be a Foreign member, residing in another country, ie. in a country that has no tax obligations what-so-ever.
This is not that hard to do, it is only paper, and a few hundred bucks.

For the LLC, you can be a 3% member, and the other member entity can be a 97% member.

So you are only taxed on the 3% profit in the US, and the other 97% member will be taxed on the 97% of the profit in the other country, that has no tax obligations.
Get it?

The LLC is still a flow thru.
But does not necessary have to flow thru to you.

To be honest, I don't quite understand why you need two EIN numbers? As far as I know, the employer identification number is a unique number assigned by the IRS tax service for business identification for tax purposes.

Never, Never, Never co-mingle tax numbers!!!
ALWAYS get a unique, fresh, virgin tax number for any business you start.
Tax numbers are free.

Forget about 'easy'. Think about 'smart'.

If you open 3 Amazon accounts, you should have 3 entities, with 3 EINs, with 3 bank accounts, even 3 accountants. Never co-mingle anything!

No given entity (in the public eye) should know about any other entities.

Also, note that you don't OWN the LLC.
You are a MEMBER of an LLC.
Technically, you should own NOTHING!
You should appear as a 'Pauper'.

It's $300 to form an LLC in texas. I formed all 3 of my LLC's in my very early 20's so I'm sure you could do it on your own as well.

You should not necessarily open an LLC in the place where you live, just because you live there (unless you have a brick and mortar store, which Ebay and Amazon are certainly not). A resident agent costs maybe $100 a year.

When you have to deal with people like, pushy people, unwanted associates, creditors, nosy suppliers, problem customers, and Ebay/Amazon support chumps asking for more information, it is always best to direct them to the 'head office' (your LLC in Denver), far away from where you live. It makes it much harder for them to damage you or your business.

Your LLC's that you create, should be disposable.
That is to say, every 5-6 years, you need to devolve them, and start with a unique, fresh, virgin company and EIN again.
Because if inquires come, it is nice to say "I'm just starting out...".

Set yourself up good from the get go, and prevent/block any possible problems at startup, that can now never happen in the future.
"Build the Dam now, before the water starts to flow".

If you are just making a few hundred bucks here and there, then this information is probably not for you. But if you are expecting to make $100K/yr or more, better do this stuff.

[Thanh5689]

Originally Posted by peter piper

Here is some good advice for opening an LLC and getting EINs.



An EIN as a sole proprietor, is still YOU.
All business management is then YOU.
All debits are Yours.
All obligations are YOU.
All liability is YOU.
All lawsuits will be to YOU.

You don't want to be a 'YOU'.
You want to be a 'strawman'.
So open an LLC or LP, and that is your strawman.

ALWAYS get a fresh EIN for each entity you create.
NEVER co-mingle EINs or SSNs (or SINS or BINS - in Canada).
Each MUST be independent and unrelated.



Never mind about 'easy'.

A single member LLC is YOU.
No protection, full liability, full obligations, etc, see the above statements.
You MUST split the equitable title (Legal term), to remove liability.

You really need an LLC with at least 2 members.
One can be you, and the other can be an entity, such as a corporation, or a trust.
This is the ONLY way you will have liability protection between your personal assets and your business. Creditors can only go after the assets of the business. Nothing else.

Some states have no LLC reporting, and no renewal fees (Delaware, or Nevada come to mind!).

And guess what? - there are no assets!

Your LLC should always be 'insolvent'.
In other words, all your profits should be written off against all your expenses.
You should have more expenses than profit (on paper) always.
That is, all the cash and profits made, should be siphoned out of the LLC, using expenses. Reach Google on how to do this legally.
So there is never anything for unscrupulous people/companies (like Ebay) to steal.

Think like Apple, Google, Microsoft, Amazon, Ebay, Tesla, etc.
They all have not paid a single cent in taxes.
All profits are siphoned off legally.

Also, one or more of the members (or as an entity) can be a Foreign member, residing in another country, ie. in a country that has no tax obligations what-so-ever.
This is not that hard to do, it is only paper, and a few hundred bucks.

For the LLC, you can be a 3% member, and the other member entity can be a 97% member.

So you are only taxed on the 3% profit in the US, and the other 97% member will be taxed on the 97% of the profit in the other country, that has no tax obligations.
Get it?

The LLC is still a flow thru.
But does not necessary have to flow thru to you.



Never, Never, Never co-mingle tax numbers!!!
ALWAYS get a unique, fresh, virgin tax number for any business you start.
Tax numbers are free.

Forget about 'easy'. Think about 'smart'.

If you open 3 Amazon accounts, you should have 3 entities, with 3 EINs, with 3 bank accounts, even 3 accountants. Never co-mingle anything!

No given entity (in the public eye) should know about any other entities.

Also, note that you don't OWN the LLC.
You are a MEMBER of an LLC.
Technically, you should own NOTHING!
You should appear as a 'Pauper'.



You should not necessarily open an LLC in the place where you live, just because you live there (unless you have a brick and mortar store, which Ebay and Amazon are certainly not). A resident agent costs maybe $100 a year.

When you have to deal with people like, pushy people, unwanted associates, creditors, nosy suppliers, problem customers, and Ebay/Amazon support chumps asking for more information, it is always best to direct them to the 'head office' (your LLC in Denver), far away from where you live. It makes it much harder for them to damage you or your business.

Your LLC's that you create, should be disposable.
That is to say, every 5-6 years, you need to devolve them, and start with a unique, fresh, virgin company and EIN again.
Because if inquires come, it is nice to say "I'm just starting out...".

Set yourself up good from the get go, and prevent/block any possible problems at startup, that can now never happen in the future.
"Build the Dam now, before the water starts to flow".

If you are just making a few hundred bucks here and there, then this information is probably not for you. But if you are expecting to make $100K/yr or more, better do this stuff.

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