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Question about Paypal Business Upgrade
 

Before I found out alot more info on these threads I filed a sole prior and obtained an EIN number and put it in my paypal when I signed up. I realized I need to open a S corp and upgrade paypal to a business where the business name on paypal must match the name on the S corp in order to work. My question is do I file for one now and add it to paypal when I upgrade? I am leaving the country for a few months so I was wondering would it be a good idea to do it now or when I get back. The reason I am asking is because now paypal has my ein number connected to my real name and on paypal is my stealth name. Ive only sold about 8 items. I have one more month of selling before I leave. Any advise would be very helpful. Thanks

Re: Question about Paypal Business Upgrade
 

All my PayPal accounts are "business accounts", for the sole reason that it allows me to change the "Business Name" (The name the party paying me or that I am paying) sees. If you're asking if you need to wait until the corporation is filed before getting a PayPal business account, the answer is no.

Business accounts on PayPal aren't really anything special. You're taking them wayyyy to seriously.

Re: Question about Paypal Business Upgrade
 

I find it always best to not add an EIN right until paypal pretty much requires it that way atleast you know its a good account and has lasted a while

Re: Question about Paypal Business Upgrade
 

So much confusion, so little time. :)

You have a sole proprietorship, not a sole prior.

Why do you even need an S corp? Why a corp at all?

PP only verifies the EIN number, not the name so the name doesn't matter.

Every time I added an EIN I had to upgrade to a business account. Are you absolutely sure you haven't upgraded, and you're not talking about something else?

Re: Question about Paypal Business Upgrade
 

Paypal also verifies the name of the legal entity. For a sole proprietor, that would be your real name, which is why that business structure is not advised for stealth as it will link back to you and your real information. Whereas with a corporation, the legal entity is the business and so the business name is what needs to match and that's easy enough to do -- just put the business name exactly as seen on your EIN and business documents when you upgrade your Paypal to a business account.

See this topic for more information (specifically post #28): http://www.aspkin.com/forums/paypal-...tml#post606102

Re: Question about Paypal Business Upgrade
 

jeffweico is obviously the go-to guy on this issue. His info is always solid.

My research and experience indicates PP only verifies that the EIN is ACTIVE at the time of you give it to them.

There is no mechanism for checking names against EIN's.

As the thread referenced shows, the name matters if you exceed the 20K limit and they send a 1099 to the IRS. Quote "my sales are above 20k a year".

The OP in the linked thread ran into trouble because he EXCEEDS the 20K limit, and when PP sends a 1099 to the IRS and it becomes obvious the names don't match, they will refer it back to PP because of the mismatch.

I've had EIN's running on some accounts with mismatched names for over 4 years without an issue, but I'm careful to never get close to the limit.

And it's possible things could change any time.

Re: Question about Paypal Business Upgrade
 

There's also another more important piece of info to give out.

Professional tax help is needed to make sure all bases are covered to meet IRS & Paypal needs.

No-one here is a tax professional.

Re: Question about Paypal Business Upgrade
 

I had a summer job at H&R Block when I was 17.... :FF:

But in all seriousness, yes, please check with a professional for any legal/medical/tax advice.

Re: Question about Paypal Business Upgrade
 

So if my PP and Sole Proprietor EIN are both in my real name, do you guys think that would be okay(if I go over the $20k limit?)

What this says to me is that:

1. When I upgrade to Business, they just check that my EIN is active

2. If I make enough to have them send a 1099, no issue is caused so long as the IRS has the same name on the registered EIN and the 1099 that is received.

Does anyone see any potential problem if I upgrade and add a Sole Proprietor EIN that is in my name?

Re: Question about Paypal Business Upgrade
 

stealthzadar, If you want to open a corp, just start a whole new account and leave the current account as is.

The entity you choose has more to do with your tax situation and needs and only you and your advisers such as accountant will know what is best for you.

Re: Question about Paypal Business Upgrade
 

I'm coming up on 200 sales... Does anyone have a comment on my question please?

Re: Question about Paypal Business Upgrade
 

Comment? Yes: You have made many many enemies here, by your insults and your failure to listen to quality advice. Because of your actions, very few people are going to bother trying to help you.

Re: Question about Paypal Business Upgrade
 

Then set an example yourself, GoA.

Dont let this continue. Offer an olive branch and try to mend bridges.

Or, ignore the poster.

Only a thought.

:peace:

Re: Question about Paypal Business Upgrade
 

Do a search of posts by jeffweico and yankee.

Below are their profiles.

You should reach your own conclusion rather than get peeved when others reply and you dislike what is said.

eBay Suspension & Paypal Limited Forums - View Profile: jeffweico

eBay Suspension & Paypal Limited Forums - View Profile: yankee

For more aid, read over this site too....

www.irs.gov

Full of facts!

Good Luck

:peace:

Re: Question about Paypal Business Upgrade
 

Thanks for the leads Greenbean... I didn't mean to come off as peeved about any of responses about tax ID, and apologize if I did.

GoA - I will not apologize for my world view. I'm hoping in time, others can separate business advice and extra curricular personal conversation. I concede that my attempt to start that precedent here has failed. I apologize for the climate that my threads in the everything else section have caused elsewhere on the board.

Re: Question about Paypal Business Upgrade
 

It has nothing to do with your political views, and everything to do with your failure to take quality advice in topics such as having 40+ unpaid item cases opened against and account.

Re: Question about Paypal Business Upgrade
 

and wanting a refund and keeping an item.

These things give many of us the impression that you are not the type of person we want to help EWHendo

Greenbean always try to help people even no matter what. Kudos to her for that ability!

Re: Question about Paypal Business Upgrade
 

Right, I will avoid hyperbole and buyer perspective questions moving forward as well. I did not fully read the rules of the forums regarding buyer-side discussion, and take full onus for that. Again, my apologies.

I guess what my question boils down to is this...
I understand that name alone is not enough to link a stealth account to a banned account. I'm trying to figure out if adding a sole proprietor EIN in my real name (as my stealth is in my real name also) makes the confirmation of my name on my stealth account strong enough to link to my banned account.

I have seen this question posed by others as well, with clear resolution in the threads I've read. If not for me, perhaps someone can shed light on this question for the sake of others in this position

Re: Question about Paypal Business Upgrade
 

You should have no problems at all. Paypal will ask this one simple question: Does this number match this name? and the IRS response is: No or Yes

Re: Question about Paypal Business Upgrade
 

To add to this correct info:

There can be no variations of the name, no typos nothing.

If your info is , say this example.

Hendo' Sales. #1234567. (Tax number)

You must not submit

Hendo Sale #1234567

Must match precisely.

:bounce:

Re: Question about Paypal Business Upgrade
 

Thank you much guys, I do really appreciate your help

Re: Question about Paypal Business Upgrade
 

I don't mean to "hijack" the thread, I think this is relevant though - I'm trying to upgrade my PayPal to a business account. I put in the EIN for my LLC, all seems fine, but then it asks for the last 4 digits of my SSN along with my date of birth. Is this normal? It seems to defeat the purpose.. Thank you!