Does paypal verify address of EIN?

[pstallone]

The big question does paypal get the address from the IRS or only the name on the EIN???

I have opened several businesses in the past before, so I am somewhat familiar with forming LLC's etc.

In fact we had 3 EIN's at one location at one point, 3 separate businesses, there is no requirement that i cans see to change the address on your EIN, when and if you move.

An example of the above: a friend has a Real estate office, a title agency and a mortgage company all at the same location. He keeps his businesses separate. as its actually required.

So if your current address on paypal doesn't match the EIN which was formed a while ago?

If it becomes an issue, you can always have the address changed, although this is done by mail and takes a while.

Any feedback would be appreciated

[Dmshark25]

I added an EIN to my Paypal account a few days ago , as of now everything is good , I think they get a check from the IRS asking if the number matches the name.

Make sure ur Paypal business name is exactly the name you have used when creating your EIN

[pstallone]

Originally Posted by Dmshark25

I added an EIN to my Paypal account a few days ago , as of now everything is good , I think they get a check from the IRS asking if the number matches the name.

Make sure ur Paypal business name is exactly the name you have used when creating your EIN

The problem with stealth accounts is we are depending on paypals ability or lack of ability to verify bank accounts and EIN numbers -attached to a name and address.

We all need a bank account, right now it appears paypal verifies the bank not the account holder, what if this changes, now all the stealth bank accounts linked to one person's name will be toast.

My legit account matches exactly, although the address changed - we moved, so we never bothered to change the address on the EIN.

[pstallone]

Originally Posted by Dmshark25

I added an EIN to my Paypal account a few days ago , as of now everything is good , I think they get a check from the IRS asking if the number matches the name.

Make sure ur Paypal business name is exactly the name you have used when creating your EIN

It really seems that keeping the stealth account small below $500 per month, is the least risky option. The likeliness of them looking at it is small.

Maybe use a business account, instead of your actual name, at least you can try saying you have several owners. Who sell individually on ebay.

[jeffweico]

Banks don't generally give information to private companies. To government agencies and law enforcement, YES, but not to private companies. Same thing with the IRS.

[pstallone]

Originally Posted by jeffweico

Banks don't generally give information to private companies. To government agencies and law enforcement, YES, but not to private companies. Same thing with the IRS.

For those with stealth accounts, it better stay that way.

[MM78]

Originally Posted by pstallone

It really seems that keeping the stealth account small below $500 per month, is the least risky option. The likeliness of them looking at it is small.

Exactly...how did u come up with $500/Month?

[jeffweico]

Originally Posted by pstallone

For those with stealth accounts, it better stay that way.

These rules have been in place for many years. In my experience, the only way a bank would give your information to a private company is if they subpoena the information and that would basically mean that a lawsuit has been filed. Obviously, if that happens, your stealth accounts will probably be the least of your worries.

Stealth is meant to get people back onto eBay after they get kicked off for silly reasons. It is NOT a license to commit fraud or engage in illegal activity.

[pstallone]

Makes sense, I agree with you completely, the reason I am considering stealth, is I hear all the horror stories and have a lot invested into ebay and e-commerce. I have dealt with Ebays customer service it was horrific, paypal I hear is the same, its hard to base a serious business on such an unstable platform.

[pstallone]

Originally Posted by MM78

Exactly...how did u come up with $500/Month?

Don't even push the limits with paypal, have an unverified account $500 per month withdrawal limit and leave it alone.

[MM78]

Originally Posted by pstallone

Don't even push the limits with paypal, have an unverified account $500 per month withdrawal limit and leave it alone.

Unverified? The 1st thing with any account is to fully verify it...Everyone on this forum knows that...including me who by the way isn't new to the game.
Every Stealth Account I make are fully verified and ready to go.

[pstallone]

Originally Posted by MM78

Unverified? The 1st thing with any account is to fully verify it...Everyone on this forum knows that...including me who by the way isn't new to the game.
Every Stealth Account I make are fully verified and ready to go.

I agree, I misspoke, the $500 seems like a safe number, if your pulling out 1000 - 1500 per month, paypal will at some point verify your account with SS or Tax ID.

My paypal account hit 11,000 and they needed my SS number. This was 4 months ago. They seem to be asking for TAX Id or SS numbers earlier than ever before. If you pull out 1000 per month and you hit 9000, you may be pushing it, I think.

[Dmshark25]

u want to create many accounts and spread your sales out, if your only selling say 10-15 items a month and around $1000, you look like your doing this as a hobby rather than a full time business and you stay under ebays radar competitors radar, I find buyers are way more forgiving and rarely leave negatives if you look like your just making some pocket change.


now with the new IRS rules PayPal will ask for a tax ID if your om pass to go over both 200 and $20000 in a year, so if u sell $4000 your first month they will ask, they want to be prepared before hand, that way if u go over the limit they can report it to the IRS, And keep themselves out of trouble


I spread sales over many accounts but wanted to try one big account also at the same time so I recently added an EIN. because I did $5000 im sales in 3 weeks


im just trying this one account but the way to go is create 100 acccounts u will last this way much longer

[jeffweico]

Originally Posted by pstallone

Makes sense, I agree with you completely, the reason I am considering stealth, is I hear all the horror stories and have a lot invested into ebay and e-commerce. I have dealt with Ebays customer service it was horrific, paypal I hear is the same, its hard to base a serious business on such an unstable platform.

I hear you. I started selling online when eBay first started out. I was happy for a couple of years until they started banning categories of items, disallowing items they didn't like from being featured auctions, etc. Eventually, I was banned. I went from making $70k - $80k per year to making nothing.

Luckily, I was offered a very lucrative job around that time. I stayed in that job for over 10 years.

When I came back to selling online, I was looking for a way to avoid a repeat of my earlier eBay disaster. I found out about stealth and decided to use it as a risk management tool to help me build a stable business.

My plan was to diversify not only by having several accounts, but also by selling different types of products across multiple venues. No single account would represent more than 5% of my total sales. No more than 30% of my business would be on a single venue. And I wanted to have no more than 20% of my sales in any single product category.

I have not reached those goals, at least not yet, but I keep my eyes on the prize. While no single account represents more than 5% of my business, eBay and Amazon account for 80% of my sales. And ONE product category represents over 70% of my total sales. So, I need to work on the last two.

Still, my business is much more stable now than when I first started out. I refuse to let any one company have so much power over me that they could make me homeless on a whim. It is simply not a smart way to do business.

[MM78]

Originally Posted by pstallone

I agree, I misspoke, the $500 seems like a safe number, if your pulling out 1000 - 1500 per month, paypal will at some point verify your account with SS or Tax ID.

My paypal account hit 11,000 and they needed my SS number. This was 4 months ago. They seem to be asking for TAX Id or SS numbers earlier than ever before. If you pull out 1000 per month and you hit 9000, you may be pushing it, I think.

Started stealthing in 2010...I will hold my breath until Paypal ask for SSN or Tax ID....In the meantime I will keep enjoying selling on all my accounts....

[pstallone]

3 years with a stealth account, that seems pretty darn good.

What are your numbers, if you don't mind me asking?

[GreenBean]

Originally Posted by MM78

Started stealthing in 2010...I will hold my breath until Paypal ask for SSN or Tax ID....In the meantime I will keep enjoying selling on all my accounts....

You got your reply in this post, OP.

MM78 sells enough to stay under the radar.

Let it go at that.

Work out how to best operate your own accounts and meet tax needs.