Taxes

[jakobrockz]

So,

I have multiple EIN numbers. My CPA is confused about my situation with eBay/Amazon Stealth about how we are breaking their TOS but are reporting everything correctly. He is saying that I may need to create an LLC for every EIN I have created, which would be costly.

Could anyone share their experience on how they set up their taxes?

****I understand this is just advice and I just want to get some ideas flowing as my EIN situation is very messed up currently****

[ebaystealth1974]

Combine all income. Deduct all expenses. Pay tax on profit.

It's simple.

[GreenBean]

Originally Posted by ebaystealth1974

Combine all income. Deduct all expenses. Pay tax on profit.

It's simple.

Frankly, my Dear, I would add one further suggestion.

Change your CPA

[Futuremogul888]

What are your EINs associated with now? EINs need to be connected with some entity.

[jakobrockz]

Yep the EINs are not attached to LLCs.

I was hoping I could create one main LLC, and then that LLC incorporates the other EINs.

The CPA is the best one in my town and he also has other clients that deal with Amazon. He actually does the taxes for the company sellerlabs which is a client for Amazon. I haven't looked too much into it but he says they're very proactive coming out with updates and new features and have had meetings with Amazon's headquarters.

[ebaystealth1974]

Sounds like he's full of sh*t.

[phaz0rz]

This is a mess. You should have been incorporating a new LLC with a state every time you set up a new EIN. Since you haven't, you need to do that now. Each EIN's respective LLC should be active by the time you file taxes next year.

You CAN have one master LLC be responsible for all your other LLC's but I don't see the point for us selling online. It's too late for you to do that now anyway. You would have needed to set your primary EIN as the "responsible party" for each subsequent EIN. This can't be done on the IRS website but Legalzoom can do it, or you can mail in paper applications to the IRS and do it that way.

But like I was saying, the parent->child LLC concept isn't necessary for us. It would add another layer of anonymity but I don't think that's the goal here.

It'll cost a few hundred dollars for you to set up however many LLC's you need to have, but that's what you really need to do. After that, filing your taxes is simple assuming you're the only member of all your LLC's. Like eBaystealth kinda mentions, you just pass the profits from your multiple LLC's to your personal tax return, and pay taxes on all your profits there.

PM me if you want advice, but I'm not an expert. Just speaking from experience over the past few years.

[newjerseymax]

How did you get each EIN? You can only have one Sole Proprietor. Thus, they must have been requested as LLC's or other corporation in first place through IRS.

You can file taxes as described above, however once paypal checks them to IRS they will limit those accounts if they have gone over 20k/200 item limit

Have they gone over the limit>? This is important as to how you file.

If they have not then its a simple as adding them as extra income on taxes, if you choose to do so. However, if over the limit then you must file taxes according to each EIN.

[phaz0rz]

^^Single member LLC, I'm assuming. That's what all 3 of mine are.

If done properly there won't be a tax ID mismatch and the accounts won't go down at tax time. I lost one PP account like that last year but it was only because I did things wrong when I originally upgraded the account. My other two have been going strong for 3 years now with 1099's being sent every year. Stealth accounts purchased here then upgraded later.

If you got a sole prop EIN then of course you'll get your PP shut down. Sole Prop EIN's don't have a business name so they are tied directly to your personal identity.

[jakobrockz]

I'm in the process of changing the info attached to the EINs to correct everything. Don't think I'll have everything fixed by the time 1099's will be sent out since the IRS is so slow lol so we'll see if some of my best accounts get shut down :/