Paypal LLC Account + Tax on registered business

d34l · #1 10-05-2009

Ok, so what I can understand, is that the ONLY option for me is to open a business, get an EIN, to avoid the SOC# check.

This is fine with me, however, I have a couple questions. What proof of business do you give them in this case?

Also I HAVE NEVER PAID TAX from ebay or anything else. Meaning that if i start a business account and everything the IRA will catch up to me.

So, how should i go about paying for tax? Do i just charge my ebay customers sales tax for purchases from my location? I live in michigan so I only need to pay sales tax for ship to Michigan locations? Or do i charge people sales tax even if they live in california?

Another thing besides paying sales tax, I will also need to pay income tax, but with all these expenses it shouldnt be much right?

So thats all info I need, I plan on getting a DBA, (also should i get a LLC or just a business name? Like do i need to put lets say ClothesRus LLC or INC) or can i just put ClothesRus. What is recommended? Also should I put llc or something else?

One more thing, when I get an EIN, do i get it at the same time as i get my DBA or some other time? Also do I need to get two DBA'S? One as a ⊗⊗⊗⊗ name for the credit cards, and one for my business or can i open up bank accounts and EVERYTHIng with my business DBA??

THANKS!!!!!! - Please try to answer my questions, kinda spread out i know sry!

Sacajawea · #2 10-05-2009

There is a detailed explanation of what is needed for the LLC EIN etc, in the subscribed members forum. sales tax is buyers responsibility to report and pay. you may have to charge for your state. There is a new Bill called the "Amazon bill" that applies to internet sales. It is in a few states. Business is considered "click and mortar" instead of "brick and mortar" by the IRS. Please speak with an accountant. Most will consult with you for free. Be sure they are knowledgeable in E-commerce/E-buisness current law. Some things are "under the radar" depending.