bjammin | 09-26-2014 03:29 PM | Re: Avoiding PAYPAL EIN? I have done that before. I had hit around 200 and PP would no longer process any more payments. People were messaging me wanting to know how are they suppose to pay. I created another PP account and added to the EB account. It was fine for a month or 2, but eventually EB came down and MC999'ed me, then they looked into my account further. Then I was indefinitely suspended from EB on that account. At that point I just tossed both PP and the EB account.
If the EB account is worth anything to you, then spend the $300 - $400 to get a EIN (get LLC, not sole proprietor or partnership). Then as long as you keep it under 20K, you will not have to worry about getting 1099'ed by IRS.
You only get reported to IRS if you hit 20k in transactions AND 200 items. You gotta meet both criteria. Please note that it is also 20k in transaction, not just sales. This includes moving money through PP from other PP.
Good Luck! |