Forum

Using friends paypal need to add EIN
 

I am using a friends pypl and ebay account splendidly.

He is concerned the income in to the paypal will be reported and has asked me to put a EIN on it so it does not get reported to the IRS under his SSN.

I have an EIN for a LLC I own. However that LLC is attached to a bad/blocked paypal acct.

The EIN was never given to paypal however.

My question. Can I just put the EIN in there? Can paypal tell what LLC is associated with the EIN or will they just take the EIN and report income to the IRS for that EIN?

Re: Using friends paypal need to add EIN
 

You need to get your own accounts.

Re: Using friends paypal need to add EIN
 

You can get your new EIN to attach the account to avoid getting limited unnecessarily.

Re: Using friends paypal need to add EIN
 

tip: enjoy the last few weeks of friendship you and this friend have. Soon it will come crashing down:doh::juggle::doh:

Re: Using friends paypal need to add EIN
 

I'm not sure if that last comment was an attempt at answering my question or not.

I simply need to know if I need to go register another LLC or if I can just use this unused EIN I currently have for another business.

Re: Using friends paypal need to add EIN
 

Not good to use friend's info even with your own EIN....tax issues...

Re: Using friends paypal need to add EIN
 

Ok let me restart then. My business partner not my friend. Can we now look past the friend part.

Now does any one actually know if using a EIN associated with a business name that is paypal/blocked will block the paypal account? Once again. The business name not the EIN is associated with the blocked account. Paypal has never heard of this EIN.

Looking for an answer to that question specifically. I don't feel it necessary, helpful, or relevant to elaborate on why I have chosen to use a partners name instead of "stealth" accounts for this business.

I can simply register another LLC but that is a huge tax and accounting head ache if it is not needed. Just wanted to know if that can be avoided nothing more.

Re: Using friends paypal need to add EIN
 

YES. It will link it. Common sense.

Tell him how to get an EIN number

So you want to show you made 20,000 for the IRS???

Re: Using friends paypal need to add EIN
 

Made and sold are not the same. I have no problem paying taxes on my profits.

I sell refurbished and used electronics for an electronics recycler. I got banned from ebay due to a typical mess up with drop shipping last Christmas. Saw an opportunity. Stupid. I got it.

The individual who's account I am using has a 3% stake in the company. I want to use my existing EIN associated with the LLC since paypal never had this EIN. Yes, so I can report taxes properly for my LLC and not have the income reported under his SSN.

My question was will paypal be able to acquire my business name using only my EIN. Paypal knows my business name and has blocked it. My research shows that that is not possible, however I wanted to be sure before I blow this account up. I can close this LLC and register another however the cost of doing so will include accounting fees as well as LLC termination and creation fees. Creating a new LLC will run me about $1800 by the time I am done. That is fine if I have to do it. However I would prefer not to spend $1800 I don't need to.

Re: Using friends paypal need to add EIN
 

I am not an expert but based on my experience the name on your PP must match the name on the EIN. Since the name on the account is under your partner's name, you can't use the EIN which is under your name. I think the best way is to open a new LLC with new EIN#. Then add the new LLC name to your PP with the new EIN# so they match.

Re: Using friends paypal need to add EIN
 

Thank you. I am going to do that now. It seems it's a little unclear if that is needed and the fact is the ebay account is well worth the money spent on a new LLC. So I'm not going to risk it.