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If I make an EIN, do I need to file taxes?
 

thinking about drop shipping. Expect 400 sales a year but only maybe $2-$3K.



Since I will go over 200 sales I will need to give paypal SSN (Can't) or EIN.

But PayPal won't send me tax form since I didn't hit both 200 sales and $20K.


My question is if I get an EIN, am I am required to do taxes, even if PayPal doesn't send me tax form?
If I am required, than I don't think the time is worth the money ($2-$3K)

Re: If I make an EIN, do I need to file taxes?
 

That's a good question.

By law you would be required to file taxes if you got an EIN. If you don't hit $20k, you'd be required to submit your own 1099.

However, I attached an EIN to an account last year (prematurely) and the account died shortly thereafter. I never filed taxes for that EIN and I'm not in trouble yet.

Hope this helps, but I doubt it will.

Re: If I make an EIN, do I need to file taxes?
 

Also worth noting if you're dropshipping at a $.50 markup, you'll lose all your profits when you pay taxes.