Forum

EIN question
 

For those that have experience,
When paypal ask for your tax id, when you get close to the 200/20,000$ limit
and you upgrade using a EIN to business account.

The account is stealth, when sign up for EIN number, is it "best" to sign up as LLC, sole proprietorship, Partnership, or Corp?

If my name is Stealth name is "John Doe"
Business "John Enterprise"

If you sign up as LLC, sole or Partnership or Corp, will your business name like "John Enterprise", Will the business name show up on the paypal tax 1099k form as "John Enterprise" (not the stealth name)?

I read someone sign up as sole proprietorship and getting a ein, then when he received his 1099, his stealth name showed up on the form, not his business name, So that kind screw things up.
What shows up on 1099 form that you receive from paypal if you have LLC or Partnership or Corp? Business name or Stealth name?

Re: EIN question
 

Go with an LLC or a corporation. When my business was a sole prop my taxes were always done under my ssn. You can get an ein # for a sole prop, but it is attached to a natural persons name. I have not done that personally for a stealth account, but my guess is it's a catch 22. If you get the ein under your real name, than your cover could be blown. If you get it under your stealth name, you cold run into trouble with the IRS...

Re: EIN question
 

Should get financial professional help to confirm

Re: EIN question
 

Would a LLC or corporation make my business name show up on the 1099k form that paypal send out? not my stealth name, Thats my question. So this would give me a second life. Because if you file a sole prop. the stealth name shows up on the 1099 not business name, which screw things up.

I am talking about this form under the PAYEE's name
http://www.freshbooks.com/blog/wp-co...9k-dft.pdf.jpg

Re: EIN question
 

Would love to know as well. I can confirm as stated above. I have and EIN on my Sole Proprietorship and the my name is always on the 1099K not the Business Name.

Re: EIN question
 

go to

Internal Revenue Service

Free to USE and speak to professionals.

Again get professional advice to protect your business affairs.

:peace:

Re: EIN question
 

I can at least confirm that getting an ein as a sole prop is a waste of time. Well, at least so far. Cannot get a second ein under another sole prop. Going thru legal zoom right now to get second ein and they're telling me irs rejected. Need to mail in an ss4 form to see of irs will approve. At this point, going thru llc is better, at least so it seems.

Re: EIN question
 

So its only a waste of time if you have burned your first one. I have run my eBay account with an EIN for since the 1099k went into existence in 2011. Have had no problems. My SSN PayPal was burned between 06-07.

Re: EIN question
 

I still have my ein thru my sole prop working. That account I maxed out my 100 limits per month. Thing is I want to have another 100/5000 acct maxed out every month too. Looks like I have to go thru the llc route. You were right about the one ein per person per lifetime. Called irs myself and they confirmed this. But they said getting an ein per entity isn't a problem. Of course u still have to pay your respective taxes.

Re: EIN question
 

If you use professional tax advice, they show you the shortcuts to doing all of this.

:juggle:

Re: EIN question
 

@greenbean, are u suggesting to open more accts and not go the ein route and just have an accountant calculate your taxes? If that was the case, then it won't work for what I'm thinking because if I were to max out my limits every month, paypal would be demanding for an ein or tax id of some sort.

Re: EIN question
 

No. I suggest speaking to a tax professional to be shown the ways to allow fulfilling IRS needs.

Re: EIN question
 

Oh, of course I need one of those. I was more of thinking how to sell 1000-2000 items per month. Each 100/5000 acct is like 10 10/1000 accts without the paypal holds. Much less annoying to switch thru 10x the accts. each time I change user accts on my computer, it could literally take 5 minutes! That plus changing the ip takes another 1 minute. 6 minutes on 10 accts is 60 minutes, or one hour just to go thru 1 round of accts and sometimes u need to go thru 1 round more than once.

Imagine going thru 100 accts. wow.

Re: EIN question
 

Sighs, sighs, sighs.

At some point you sit down.

You decide on the number of (stealth) accounts.

You either make multiple accounts and spread the sales.

Or you look into making accounts that are as close to real as possible.

You then step outside the box. Take the services of a tax professional and step up your sales.

:juggle:

Re: EIN question
 

about adding a EIN to a stealth PayPal, So if the 1099 has the PAYPAL account owners (stealth) name and not the business name ? Any way to get around that?

Is there any way possible that the business name show up on 1099k instead? or its impossible (Maybe having it as Partnerships, coporation?)

Help me here,anyone with experience with this?

Re: EIN question
 

Been lots of members on here talking about making LLC's etc. However, none of them have actually answered this Question. The Sole Proprietor EIN account I have like stated before the past 3 1099ks have my personal name not the Buisiness name.

Would love to know myself about the other forms of business.

Re: EIN question
 

Yeah I like to know too, hoping someone that has experience with this knows,

Re: EIN question
 

you can make a single Member LLC and get the EIN in the LLC name and add it to your Paypal account. Partnership LLC you may have to pay taxes for the LLC to IRS

Re: EIN question
 

Aren't you like a disowned entity or something I'd you are a single member llc? That means you have to pay taxes based on the owner of the llc

Re: EIN question
 

Something I just started which is really nice is portable Firefox , you can use one user account and format it to your liking with whatever addons, privacy settings you like, any bookmarks and add passwords to websites like ipburger, or any other sites, of course not eBay ,

this first one you are making a template to copy, but I put router settings with passwords anything I normally would need to do a 100 times and make a new user account ,

now u just need to do this one time and just copy the folder and name it S2, S3, etc and I tuck them all neatly into one big folder labeled eBay right on the desktop

and just copy and paste that formatted portable Firefox every time u need a new stealth, saves so much time from creation to operating everyday

Re: EIN question
 

When did you become a tax professional to give advice?

Forum refers users to seek professional tax help.

You do not know the business arrangements so you should avoid saying too much.

:nono:

Re: EIN question
 

I already have two USA LLC. So i know how they function. LLC needs to pay state taxes if any to the state they are registered. Also Partnership LLC has to pay taxes to the IRS on the LLC and then when the income is distributed among the partners they have to pay taxes on individual capacity also. So i would prefer LLC to be single member also for Non USA resident since the source of income is outside USA and they do not have to pay taxes to the IRS but the country they reside in.

Anyways i know am not a tax consultant but this is just to share the experience i had dealing with LLC

Thanks