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Old 02-03-2015
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Default Paypal wants a tax number

Hi, so I have received the email from Payapal that I need to provide a tax number. I have seen the info here about how it's pretty easy to get/use an EIN and switch to a business account and as long as it matches the business name it should be good. I could walk away from this account altogether, but having a nice 250 item limit has brought in a lot of cash in a short period of time. (probably why they want it) So went to the irs website and there are many choices to make when you ask for an EIN. I was going to choose a sole proprietorship, but then it says if you have a sole proprietorship then you have to use this EIN for all of your business ventures. Well, what if another good selling account is asked by Payapal to provide this? I won't be able to get another EIN? Should I set this up as a corporation instead? Not sure what kind of setup I should use. So if anyone has set up EINs for multiple accounts I would greatly appreciate any advice.
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Default Re: Paypal wants a tax number

You need to open an LLC. It should be a corporation. Do not do an LLC as a sole proprietor. People have said that the sole proprietor LLC still traces back to your SSN which will still ID you. I believe LLC partnership will have the same effect as requiring your SSN, but I am not sure.

EIN (LLC-corp) work. I use them on a few on my accounts. You really should talk to an accountant or lawyer about this. They are professionals and can give you solid advice instead of me offering half-ass advice that I am not 100% on. Do not use Legal Zoom or similar services for this.
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Default Re: Paypal wants a tax number

Its because with LLC's many people can be associated with one unlike sole prorietor. Getting a EIN off IRS website is just another verison of your S.S.

I say that because once registered it links directly back to you, and ONLY you.

People get EIN's when they don't want to hand out there actual social security number. There are other uses but as for stealth generally its best to open a LLC. Some users have reported no issuses with using EIN from IRS website BUT here the thing....

Upon adding the EIN you most likely wouldn't see any issuses BUT if paypal for whatever reason has the slightest suspicion or something raises a red flag they can easily trace your social security number back to you off the EIN number.

Its like when you pay via echecks (usually on accident) on paypal. Its happened to me with ebay fees more than once. When a echeck goes threw technically if a manual review happens a paypal rep could pull up the name off my bank account IF they wanted.

This is why its always best to elimnate all "possible" issues that could arise. If you are willing to add a EIN to the account simply go the LLC route. It will be worth in the long run.

Not to mention you'll have a better piece of mind. Once in full effect your Paypal account will be ALOT stronger.
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Default Re: Paypal wants a tax number

Quote:
Originally Posted by solefoodbk View Post
Its because with LLC's many people can be associated with one unlike sole prorietor. Getting a EIN off IRS website is just another verison of your S.S.

I say that because once registered it links directly back to you, and ONLY you.

People get EIN's when they don't want to hand out there actual social security number. There are other uses but as for stealth generally its best to open a LLC. Some users have reported no issuses with using EIN from IRS website BUT here the thing....

Upon adding the EIN you most likely wouldn't see any issuses BUT if paypal for whatever reason has the slightest suspicion or something raises a red flag they can easily trace your social security number back to you off the EIN number.
Are you saying don't apply directly on irs website? Is it better to use one of these services where they obtain the EIN for you for a fee? A better route to keep from being linked, or at least a little more difficult to be linked?

Thanks, I understand now that an LLC is best since many people can be associated with it. But does that mean an individual can be associated with many LLCs? I guess that's how to manage having multiple accounts with paypal and have many EICs at the same time...
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Default Re: Paypal wants a tax number

Quote:
Originally Posted by bjammin View Post
You need to open an LLC. It should be a corporation. Do not do an LLC as a sole proprietor. People have said that the sole proprietor LLC still traces back to your SSN which will still ID you. I believe LLC partnership will have the same effect as requiring your SSN, but I am not sure.

EIN (LLC-corp) work. I use them on a few on my accounts. You really should talk to an accountant or lawyer about this. They are professionals and can give you solid advice instead of me offering half-ass advice that I am not 100% on. Do not use Legal Zoom or similar services for this.
Thanks! That answers that question..
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Default Re: Paypal wants a tax number

Not sure if you knew this already too, but make sure on your other accounts wait until they ask for the tax id request like you did with this one.

If you don't wait like you did with this one, they most likely will ask for social security and other information.
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Default Re: Paypal wants a tax number

Quote:
Originally Posted by solefoodbk View Post
Not sure if you knew this already too, but make sure on your other accounts wait until they ask for the tax id request like you did with this one.

If you don't wait like you did with this one, they most likely will ask for social security and other information.
OP, I do this also. I have never added an EIN until asked by Paypal
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