Forum

changing paypal to business acct...
 

I need some advice on a situation. I have a stealth account that doesn't have any selling limits and I'd like to change it to a business account with an EIN attached. The paypal acct is premier as of now. Here's my plan, tell me if I'm doing anything wrong...

Rent UPS box address
Start an LLC using that address
Get EIN number
Upgrade paypal and ebay to business accts using new address and business name

My only concern is that my accts were created with a false first and last name, can I change the name on the accts to my real name? I need the name to match the name on my EIN, correct? Or does only my business name have to match?

No you can't change the name on the PayPal account. Members have different opinions regarding this and the EIN situation. Personally I would not use any other name than my actual one or a variation of it. Because when I get my 1099k at the end of the year it has my name on it and not the business name. Not sure if that is different of LLC; I am a sole proprietorship. Would rather not explain a John Doe name to the IRS. Some members on here have said ohh just say it is an employee. The IRS will then continue to ask where is the Payroll taxes for this employee. So either way under their plan you are doomed.

i dont mind paying taxes but i dont believe in adding ein's, even to unlimited accounts, you can always add more accounts and I would rather not seem suspicious to the IRS but having "John Doe" work for me

Thanks for the input. I'm wondering if the first and last names need to match for an LLC? Or if only the business name can be seen? And would it be possible to create a new paypal account and use it with the ebay account? Anyone ever tried?

eb/pp/amazon only see business name and EIN. You really want the name and business name on the ebay to match what is on the linked pp.

I have read so many mixed opinions and experiences I really don't know what to think.

Except when they send you a 1099k at the end of the year if you used an EIN. I know if it is a Sole Proprietorship the 1099K has you name on it not the business name so if your PayPal is registered under John Doe that could be a problem when the 1099k is filed. A Corporation might be different I am not sure. Also if you go the LLC route I would talk to an accountant first. Some states like California for example if you are LLC you pay taxes on your gross sales not your profit.

You can have an S-Corp under a different name than your paypal account (or ebay) and that wouldn't give you a problem with paypal matching your name to your business name.

Then go see a tax professional to get the best advice for your business.

They work with you to cover all bases to make sure everything is OK for the IRS.

Start with this site

Internal Revenue Service

toll free number. You can speak to trained experts who will guide you.
Good Luck
:typing: