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Paypal : Asking for SSN?
 

Just got a notice that my paypal account cannot receive payments unless I provide a SSN.

Now, all of my paypal accounts I have used other than an old business one, are in good standing.

Right now I am using a SSN for a personal account and an EIN for a business account.

What are my options here? I think I could use an EIN as a sole proprietor issued by the IRS but I am almost positive that number is blacklisted on Ebay itself, where I am making sales (or was until this issue arose).

I need to make sure I don't screw this up. Should I just create a new paypal stealth account or try and enter a tax ID on the current one? I am just afraid that having blacklisted info on paypal will be relayed to Ebay and get my Ebay account suspended. This CANNOT HAPPEN.

Lastly, if I decide to neglect this current paypal account and make a new one, what is the consequence? Can I still transfer over my funds and clear out before a possible suspension?

Really would appreciate help here, as this is very sensitive and crucial since a lot is riding on it.

Re: Paypal : Asking for SSN?
 

Is this due to the IRS tax reporting requirement, or are they checking your identity?

If it is for tax reasons, and your account is in good standing otherwise you should still be able to make withdrawals.

I would withdraw the money and switch the PayPal to a business account. You are on the right track with the EIN, but I don't think the IRS will give you another one as a sole proprietor. You may have to apply as an entity, such as an LLC. LLC's are NOT difficult to set up and in most states they don't cost much.

You can get an EIN for an LLC BEFORE you actually set up the LLC, but you will eventually have to actually set the LLC up or close out the EIN.

An EIN registered by you for an LLC will match with the IRS under the BUSINESS NAME. Your name will not come up at all.

Re: Paypal : Asking for SSN?
 

Thanks for the advice. I already have one LLC and am planning on getting a new one very soon.

Just need to move into my new address and use that as a business location.

Should I just get another stealth Paypal account to tide me over?

Re: Paypal : Asking for SSN?
 

Also, to clarify : this issue is about the Tax ID requirement because apparently I went over the 200 sales limit.

I thought you had to go over BOTH 200 sales and $20,000