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Old 03-19-2016
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Default EIN , LLC , Process?

Got the email from Paypal about needing Tax ID info yesterday. I am no where near 20k in sale but I have sold over 200 items, so I guess that's why. So I have searched through the forums ; I am bit confused about the process.

-Do I need to get an LLC and then an EIN, or is an EIN enough?
-I sign up for an EIN under LLC and not as sole proprietorship, correct?
-I know for the EIN i should use all valid information, but for the business should I use my ebay selling name or use my stealth name as the business?
-I believe an EIN is free , but what about an LLC? it seems like everyone is charging for it?
-I also will have to make a paypal business account, once I enter the EIN, will I need to make any adjustments?

Thanks for any answers you can give
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Old 03-19-2016
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Default Re: EIN , LLC , Process?

Quote:
Originally Posted by pirate1122 View Post
Got the email from Paypal about needing Tax ID info yesterday. I am no where near 20k in sale but I have sold over 200 items, so I guess that's why. So I have searched through the forums ; I am bit confused about the process.

-Do I need to get an LLC and then an EIN, or is an EIN enough?
-I sign up for an EIN under LLC and not as sole proprietorship, correct?
-I know for the EIN i should use all valid information, but for the business should I use my ebay selling name or use my stealth name as the business?
-I believe an EIN is free , but what about an LLC? it seems like everyone is charging for it?
-I also will have to make a paypal business account, once I enter the EIN, will I need to make any adjustments?

Thanks for any answers you can give
1) You get an EIN first from IRS.gov. You will have up to a year from the time you get your EIN to register your LLC with your state by filing articles of incorporation. You will need to be registered with your state by tax time of the next year.

2) Right. Multi-member LLC is recommended around here because you can have more than one of that type of company

3) You can use whatever you want as the business name, it does not have to be relevant to either your name or your ebay name. When I'm creating an EIN I think of a professional sounding company name which is relevant to the niche the account sells in.

4) Registering your LLC with your state is not free but you do not want to hire anybody to do it for you, because you can easily do it yourself online. All states have online portals (I'm fairly certain) where you can register your business with your state. The price varies by state and I've heard it's very high in California. In my particular state it's $110.

5) It's easier if you create/buy a personal account first, then upgrade it to a business account before it becomes tax limited.
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Old 03-19-2016
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Default Re: EIN , LLC , Process?

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Originally Posted by phaz0rz View Post
1) You get an EIN first from IRS.gov. You will have up to a year from the time you get your EIN to register your LLC with your state by filing articles of incorporation. You will need to be registered with your state by tax time of the next year.

2) Right. Multi-member LLC is recommended around here because you can have more than one of that type of company

3) You can use whatever you want as the business name, it does not have to be relevant to either your name or your ebay name. When I'm creating an EIN I think of a professional sounding company name which is relevant to the niche the account sells in.

4) Registering your LLC with your state is not free but you do not want to hire anybody to do it for you, because you can easily do it yourself online. All states have online portals (I'm fairly certain) where you can register your business with your state. The price varies by state and I've heard it's very high in California. In my particular state it's $110.

5) It's easier if you create/buy a personal account first, then upgrade it to a business account before it becomes tax limited.
Thanks for all the information, I am very grateful :D
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Old 03-19-2016
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Default Re: EIN , LLC , Process?

Glad I could help

Learned almost everything I know from helpful members here!

Last edited by phaz0rz; 03-19-2016 at 05:16 PM.
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Old 03-19-2016
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Default Re: EIN , LLC , Process?

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Originally Posted by phaz0rz View Post
Glad I could help

Learned almost everything I know from helpful members here!
Same, I'd be so lost without everyone here. Btw let's say my account gets banned, do I still need to get an LLC within a year?
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Default Re: EIN , LLC , Process?

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Originally Posted by pirate1122 View Post
Same, I'd be so lost without everyone here. Btw let's say my account gets banned, do I still need to get an LLC within a year?
If your account get banned, just close your LLC and move on to a new stealth account. Remember for stealth, we need everything new...
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Old 03-19-2016
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Default Re: EIN , LLC , Process?

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Originally Posted by pirate1122 View Post
Same, I'd be so lost without everyone here. Btw let's say my account gets banned, do I still need to get an LLC within a year?
No. You can send a letter to the IRS that basically tells them you are out of business, or never actually formed the LLC. But those numbers are permanent.
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Old 03-21-2016
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Default Re: EIN , LLC , Process?

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Originally Posted by phaz0rz View Post
5) It's easier if you create/buy a personal account first, then upgrade it to a business account before it becomes tax limited.
If I didn't upgrade an account to business before they ask for EIN/SSN, is it too late and the account is garbage?
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Old 03-21-2016
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Default Re: EIN , LLC , Process?

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Originally Posted by barkley70 View Post
If I didn't upgrade an account to business before they ask for EIN/SSN, is it too late and the account is garbage?
From looking through old forum post, I have read one or two users post saying they would intentionally wait until Paypal requested the number.

http://www.aspkin.com/forums/paypal-...h-account.html
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Old 03-21-2016
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Default Re: EIN , LLC , Process?

Quote:
Originally Posted by barkley70 View Post
If I didn't upgrade an account to business before they ask for EIN/SSN, is it too late and the account is garbage?
No, you can still upgrade. I just upgraded a limited account last week.
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