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Old 10-17-2013
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Default Making a DBA once paypal asks me for EIN...

I have a few stealth accounts with bogus addresses that I do not have access to. I am going to continue creating accounts and spreading sales to avoid PayPal's request for a SSN or EIN.

However, in the event that one of these accounts do eventually trigger PayPal's algorithms for the 200/$20000 projections, I want to know what my options will be.

I wanted to know if it's possible to create a DBA and add an EIN to a PayPal account with a bogus address. Will PayPal know if the address registered under the DBA and the address they have on file do not match?

Obviously it is impossible for me to match the two addresses because the addresses I used for these stealth accounts are not ones I have access to, and therefore I cannot use them when making a DBA.

Do I have the option to go the DBA route should PayPal ask for an EIN? What can I do?
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Old 10-17-2013
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Default Re: Making a DBA once paypal asks me for EIN...

When you gave either an SSN or EIN to a payment processor (Amazon, PayPal, etc.) for tax purposes, they will verify the NAME associated with the SSN or EIN. This is an EXACT matching process and the results received by the payment processor are simply MATCH or NO MATCH. They only verify information that is given to them. The IRS will NOT give out any information about the SSN/EIN owner.

HOWEVER: When applying for an EIN for a d/b/a the name that is verified is the INDIVIDUAL NAME, not the business name. So, if you are John Smith d/b/a Smith Products it would be "John Smith" that would create a MATCH. If the record was submitted as "Smith Products" it would come back as a NO MATCH.

If you want them to match on the BUSINESS NAME, then you would have to apply for the EIN as a corporation or an LLC. If you do that, then the MATCH would happen on "Smith Products" and NOT on the individual name.
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Default Re: Making a DBA once paypal asks me for EIN...

Quote:
Originally Posted by jeffweico View Post
When you gave either an SSN or EIN to a payment processor (Amazon, PayPal, etc.) for tax purposes, they will verify the NAME associated with the SSN or EIN. This is an EXACT matching process and the results received by the payment processor are simply MATCH or NO MATCH. They only verify information that is given to them. The IRS will NOT give out any information about the SSN/EIN owner.

HOWEVER: When applying for an EIN for a d/b/a the name that is verified is the INDIVIDUAL NAME, not the business name. So, if you are John Smith d/b/a Smith Products it would be "John Smith" that would create a MATCH. If the record was submitted as "Smith Products" it would come back as a NO MATCH.

If you want them to match on the BUSINESS NAME, then you would have to apply for the EIN as a corporation or an LLC. If you do that, then the MATCH would happen on "Smith Products" and NOT on the individual name.
Huge thanks for the quick reply.

So, if I am understanding you correctly, the name that the DBA is in is what matters?

So, to use your example, if my PayPal stealth account is under the name John Smith, then I must make my DBA name John Smith as well. And whatever address I register with the DBA is not shared to PayPal when they receive my EIN number -- is this correct??
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Default Re: Making a DBA once paypal asks me for EIN...

Yes I went through this couple times amazon triggers after 50 transactions and ebay asks when u are on pass to go over the 200/20000 mark that way they have all the info ready to report to the IRS in my experience mine were triggered. Between $4500 and $6500 and u get the EIN INSTANT just remember that u are on the IRS website not paypal so be sure to put all your documented info. As Jeff I think said they will just make sure ur Paypal Business name matches the business name(DBA) u filled along with your EIN, and if u do not have a business account again in my experience when triggered this was on two strong accounts both have became power selling accounts so I chose EIN and it brings you the page to upgrade to a business account and it's very important the name is an exact match from what I read they verify by giving the EIN ALONG WITH THE DBA TO IRS AND THE ANSWER BACK IS EITHER MATCH OR NO MATCH THEY DO NOT SAY WELL THE EIN IS REGISTERED TOBA SMITH AND PAYPAL TO SMYTH , so it's straight forward , on both I used my home address and obviously name DOB AND SS# all associated with my suspended account so the name that matters is the DBA and Paypal business name


Also u are given the EIN instantly it takes 5 mins very quick, it says for bank account it is ready for use and tax filing but verification it says to wait two weeks , however I have used the EIN FROM ONE hour too 24?hours after creation and they all passed like I said this was back end of June and July both are now power selling

Also if ur account is not in order or you raised done flags they can ask for your SS# , they can do whatever they want so no matter what u need to keep ur accounts running perfect but when u get hit with a tax I'd it brings ur account under scrutiny so could cause a problem if 30 cases open and 10 low DSRs or something

But the process simple and takes minutes to complete and use in my personal experience
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Default Making a DBA once paypal asks me for EIN...

And op to ur last question if u use an EIN u will need a business account and if u don't have at time ur asked and u pick the EIN AS ur choice than it will bring u to the upgrade to business account page easy registration and that's where the ask what ur business name is and that name the business name needs to match the DBA u used when getting the EIN , and on the IRS site that is all your real information no playing
around the only name that can be a fictitious is ur DBA .

And when upgrading to a businress account I always use a more business like name rather than use the contact name when opening the account so if u used john smith when u opened the account when u up grade to business u can make ur business name anything like
Premier Solutions inc if u make that ur Paypal business name than that's the name needed as DBA when creating ur EIN
When u upgrade to business u create a new business name the name john smith u used to open a primier account is now a business's contact info and has nothing to do with the EIN unless u make ur business name for Paypal John smith than the DBA for the EIN must be john smith but on its site name address do. All real info

Last edited by Dmshark25; 10-17-2013 at 04:22 AM.
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Old 10-17-2013
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Default Re: Making a DBA once paypal asks me for EIN...

@nodeal, reading for you:

Apply for an Employer Identification Number (EIN) Online
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Old 03-09-2014
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Default Re: Making a DBA once paypal asks me for EIN...

I'm new here, so please bear with me... If I plan on selling over the high limits, say 60K plus a year. Would I be better off just starting with a LLC and opening a business account from the start ? Or starting personal and upgrading to business ? I can not use my SS# Thanks
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Default Re: Making a DBA once paypal asks me for EIN...

Quote:
Originally Posted by serenityseeker View Post
I'm new here, so please bear with me... If I plan on selling over the high limits, say 60K plus a year. Would I be better off just starting with a LLC and opening a business account from the start ? Or starting personal and upgrading to business ? I can not use my SS# Thanks
As a Sole Proprietor you are entitled to one EIN. So you don't necessarily have to incorporate. But depending on your state etc. Some form of Sellers Permit for collecting sale tax, Business license in most cities/towns. DBA is not necessary in all states. Like CA or AZ. AZ as far as I know you don't need a DBA at all. In CA if you last name is part of the business name. This your name is John Smith and your company is Smith Industries. You would not need to go DBA with the county clerk in CA and publish for like 6 weeks in a paper.

It really depends lots on locations. Also some people in rural areas you don't need a business license from the city/county. So many variations would be best to talk to an account. If you chose not to I would start by looking up everything in the following order city, county, state, then Federal.
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Default Re: Making a DBA once paypal asks me for EIN...

From everything I have read so far, Paypal will want me to verify info if I start selling like I normally do. 100-150 items per week. So, I would definately be better off starting the business LLC way correct ? In Illinois, I don't have a problem with incorporating. And we do collect sales tax now anyway. I work for someone else and am getting paid peanuts while they collect the lion's share. Thanks for your help. I thought it was hopeless ever getting back myself.
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Default Re: Making a DBA once paypal asks me for EIN...

Quote:
Originally Posted by serenityseeker View Post
From everything I have read so far, Paypal will want me to verify info if I start selling like I normally do. 100-150 items per week. So, I would definately be better off starting the business LLC way correct ? In Illinois, I don't have a problem with incorporating. And we do collect sales tax now anyway. I work for someone else and am getting paid peanuts while they collect the lion's share. Thanks for your help. I thought it was hopeless ever getting back myself.
If you have your own website and are selling getting paid via PayPal this is possible. If you are trying to sell items on eBay it will take you literally 3-5 months before you can sell more than 10 items each month.

Either way all payments you receive early on will be held for like 14-30 days to make sure they clear without any buyer disputes and to make sure you aren't trying to take the money and run. Make sure you have some kind of tracking for each transaction.

Last edited by vogeltron; 03-10-2014 at 05:19 AM.
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Default Re: Making a DBA once paypal asks me for EIN...

Quote:
Originally Posted by jeffweico
When you gave either an SSN or EIN to a payment processor (Amazon, PayPal, etc.) for tax purposes, they will verify the NAME associated with the SSN or EIN. This is an EXACT matching process and the results received by the payment processor are simply MATCH or NO MATCH. They only verify information that is given to them. The IRS will NOT give out any information about the SSN/EIN owner.

HOWEVER: When applying for an EIN for a d/b/a the name that is verified is the INDIVIDUAL NAME, not the business name. So, if you are John Smith d/b/a Smith Products it would be "John Smith" that would create a MATCH. If the record was submitted as "Smith Products" it would come back as a NO MATCH.

If you want them to match on the BUSINESS NAME, then you would have to apply for the EIN as a corporation or an LLC. If you do that, then the MATCH would happen on "Smith Products" and NOT on the individual name.
Quote:
Originally Posted by Dmshark25 View Post
Yes I went through this couple times amazon triggers after 50 transactions and ebay asks when u are on pass to go over the 200/20000 mark that way they have all the info ready to report to the IRS in my experience mine were triggered. Between $4500 and $6500 and u get the EIN INSTANT just remember that u are on the IRS website not paypal so be sure to put all your documented info. As Jeff I think said they will just make sure ur Paypal Business name matches the business name(DBA) u filled along with your EIN, and if u do not have a business account again in my experience when triggered this was on two strong accounts both have became power selling accounts so I chose EIN and it brings you the page to upgrade to a business account and it's very important the name is an exact match from what I read they verify by giving the EIN ALONG WITH THE DBA TO IRS AND THE ANSWER BACK IS EITHER MATCH OR NO MATCH THEY DO NOT SAY WELL THE EIN IS REGISTERED TOBA SMITH AND PAYPAL TO SMYTH , so it's straight forward , on both I used my home address and obviously name DOB AND SS# all associated with my suspended account so the name that matters is the DBA and Paypal business name.

And op to ur last question if u use an EIN u will need a business account and if u don't have at time ur asked and u pick the EIN AS ur choice than it will bring u to the upgrade to business account page easy registration and that's where the ask what ur business name is and that name the business name needs to match the DBA u used when getting the EIN , and on the IRS site that is all your real information no playing
around the only name that can be a fictitious is ur DBA .

And when upgrading to a businress account I always use a more business like name rather than use the contact name when opening the account so if u used john smith when u opened the account when u up grade to business u can make ur business name anything like
Premier Solutions inc if u make that ur Paypal business name than that's the name needed as DBA when creating ur EIN
When u upgrade to business u create a new business name the name john smith u used to open a primier account is now a business's contact info and has nothing to do with the EIN unless u make ur business name for Paypal John smith than the DBA for the EIN must be john smith but on its site name address do. All real info

Dmshark, are you talking about if you got the EIN from your LLC? Not if you just do a DBA without an LLC?

Because from what I understood from reading JeffWeico's post, it works like this: EIN checks a match for your name and not the DBA name -- unless you got the EIN from your LLC then the LLC (business) name is what the EIN checks to match up with.

So a question considering the above. Does this, consequently, then mean that no matter how many EINs I create with or without an LLC, it will only match up to ONE name? (either the LLC name if you used an LLC, or your first and last name if you don't have an LLC) Thus, then it is pointless to create multiple EIN and assigning it to multiple DBA names? The only way to create multiple matching EIN would then seem to be to create multiple LLC each with one EIN matching the LLC name. (And that can add up to be quite pricey...)

Or does Amazon/paypal/ebay not check if the EIN matches the name so we can get away with using multiple EINs for multiple accounts... because it seems that, again, an EIN can only match to ONE name and DBAs are not an entity that is linked with an EIN (so an EIN is either assigned to your real name, or to the LLC name and the EIN is not linked to any DBA names). So how are people creating multiple accounts using EIN and DBA names if the EIN shouldn't match with the DBA name for verification?

Can someone please shed light on this, thank you.
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Old 03-10-2015
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Default Re: Making a DBA once paypal asks me for EIN...

Just following up on this, can anyone give some more insight. Thanks
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Old 04-07-2015
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Default Re: Making a DBA once paypal asks me for EIN...

Does Amazon check the EIN with the name on the amazon account?
Im wanting to use my sole proprietor (i.e. no LLC) DBA name, but as I explained above, It appears that an EIN will always be associated with your real name only, unless you have an LLC to get the EIN. So will the sole proprietor DBA name be a problem or is this a non-issue with Amazon?

Last edited by Productions; 04-07-2015 at 05:32 PM.
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Old 09-20-2015
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Default Re: Making a DBA once paypal asks me for EIN...

thanks for information I really needed this
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