Will the 1099's be mailed or available electronically?

guitarca18 · #1 10-28-2011

Like a lot of people on here I have several stealth paypal accounts. I'm thinking of registering several new business names and EIN's under an umbrella corp to keep my accounts truly separate and just enter in the new legal business name, start date and EIN.

1. What I'm wondering is will the 1099 be available electronically? If they mail it well...I'm not ever going to get it...

2. Does a 1099 have anything on it besides the legal business name and the number breakdowns? For example if my account is registered as Smith Corp. and the name on my account is John Smith will the 1099 have John Smith on it anywhere? Might be hard to explain to my tax guy who John Smith is... LOL

Sell4more2 · #2 10-28-2011

I was wondering the same thing.... :D

cardfelon · #3 10-28-2011

Paypal will electronically deliver the 1099 to you. As for what it will say you could just google it or go to the IRS website and look at a blank form to see what boxes are on it. That would give you the answer.

KingRay · #4 10-28-2011

Last I knew the 1099's from anyone had to be mailed out by jan 31st by law.

I think paypal will be sending them via email as well but pretty sure they have to actually mail them as well.

Now there will be a problem with that that some have not thought about.

They (Paypal) will most surely limit accounts that get these returned to them for being delivered to the wrong address or an address that will not accept it.

Some of you will say "BS that wont happen" but I can assure you that will happen to most of the ones that got delivered to an address where that person on the address doesnt live there.

As for Cardfelon. That big multiple EIN things is a dream. You can try it but you will be in so much of a tax/legal tangle that you will be forced to get with a "tax pro" (as so many keep crying about) and spend way more than you wanted to get yourself out of that much mess.

KingRay · #5 10-28-2011

Have you read my recent post about how the name must match the IRS records as well? If not look for it.

I got hit with it and explained my situation and what they are doing to correct BS info that has been give to them.

In order for the name to match on PP it has to match the EIN with the IRS. In order for that to match it has to match your SSN card's name.

Another reason that the EIN is not going to be very stealthy at all.

If you want stealth you will have to keep following the same rules you already do. Create multiple accounts and keep them under the request limit for paypal which is random. When they ask, keep selling until you cannot. Then move one. Pretty much how is must be done now adays.

Quote:

Originally Posted by guitarca18

Like a lot of people on here I have several stealth paypal accounts. I'm thinking of registering several new business names and EIN's under an umbrella corp to keep my accounts truly separate and just enter in the new legal business name, start date and EIN.

1. What I'm wondering is will the 1099 be available electronically? If they mail it well...I'm not ever going to get it...

2. Does a 1099 have anything on it besides the legal business name and the number breakdowns? For example if my account is registered as Smith Corp. and the name on my account is John Smith will the 1099 have John Smith on it anywhere? Might be hard to explain to my tax guy who John Smith is... LOL

guitarca18 · #6 10-28-2011

Quote:

Originally Posted by KingRay

As for Cardfelon. That big multiple EIN things is a dream. You can try it but you will be in so much of a tax/legal tangle that you will be forced to get with a "tax pro" (as so many keep crying about) and spend way more than you wanted to get yourself out of that much mess.

I think you were actually referring to me...You are right..there really is no way to do it unless i have 7 different LLC's which is a tax nightmare...I was trying to figure out a way I could set it up where my existing LLC owned the 7 other "businesses" since the federal government doesn't recognize single member LLC's anyway. I do have a tax pro btw...they are stumped...stupid small townies..They told me "Well we don't have any clients that own more then one business"

cardfelon · #7 10-28-2011

Quote:

Originally Posted by KingRay

Last I knew the 1099's from anyone had to be mailed out by jan 31st by law.

I think paypal will be sending them via email as well but pretty sure they have to actually mail them as well.

Now there will be a problem with that that some have not thought about.

They (Paypal) will most surely limit accounts that get these returned to them for being delivered to the wrong address or an address that will not accept it.

Some of you will say "BS that wont happen" but I can assure you that will happen to most of the ones that got delivered to an address where that person on the address doesnt live there.

As for Cardfelon. That big multiple EIN things is a dream. You can try it but you will be in so much of a tax/legal tangle that you will be forced to get with a "tax pro" (as so many keep crying about) and spend way more than you wanted to get yourself out of that much mess.

I don't think you have any clue what you are talking about. I have gone to a accountant and set up all my businesses which are LLC's with EIN's. Yes the EIN numbers all have my real information on them. And if you had actually gone through the process of giving your tax information to Amazon then you would know that you have to electronically consent to get the 1099 by email or they will mail it out. They clearly lay that out on the website.

I have submitted all the EIN numbers to Amazon and what do you know?? They all got accepted and my accounts are good to go. So until you have done this with Amazon yourself then you need to quit saying that others don't know what they are talking about. All of my posts on this topic are in regards to Amazon and not Paypal. You come off like you are a tax god and the final word on this subject. Other people are just sharing their experiences. Get over yourself!

cardfelon · #8 10-28-2011

Quote:

Originally Posted by guitarca18

I think you were actually referring to me...You are right..there really is no way to do it unless i have 7 different LLC's which is a tax nightmare...I was trying to figure out a way I could set it up where my existing LLC owned the 7 other "businesses" since the federal government doesn't recognize single member LLC's anyway. I do have a tax pro btw...they are stumped...stupid small townies..They told me "Well we don't have any clients that own more then one business"

I have mine set up with a C corp that owns all of the LLC's. All of the money flows through the C Corp and then I pay myself what the IRS considers a "reasonable" salary. Since the C-Corp has already paid the taxes then you aren't subject to the higher "self employment" tax rate that the IRS has. You still have to pax tax on that money though you get from the C-Corp.

So the government will get paid twice for any profit you make off of items. It sucks but that is how it works.

guitarca18 · #9 10-28-2011

In the long run though depending on the state I file my LLC's in will justify how much just the LLC's alone will cost. Right now Nevada and Wyoming look to be the cheapest.

If I open LLC's in Nevada I need a registered agent service (found one for $125) and then I can file all the initial documents for what looks like under an additional $300 in fee's to the state...After that annual fee per LLC is $200..Take that and multiply it by 7 for me..

That is what I am facing. How the money is channeled is basically back to me through a sole prop on the federal level because the IRS doesn't recognize single member LLC's for tax purposes..

I'm curious what state you have registered your LLC's in...Either way I think every state has some sort of annual fee per LLC you have to pay correct?

guitarca18 · #10 10-28-2011

Has anyone considered doing nominee EIN service to register their new LLC with an EIN and be completely blanket shielded from everything?

cardfelon · #11 10-28-2011

Wyoming provides you with the most privacy vs any other state. I am not sure what it costs to file in there. In my state it was $100 for the C-Corp and $100 for each LLC. There are no annual filing fees. Those fees were just to file with the Secretary of the State. That didn't include the fees paid to my accountant and attorney to draw up all the paperwork. You have to spend money to make money.

guitarca18 · #12 10-28-2011

What state is that if you don't mind me asking?

cardfelon · #13 10-28-2011

I live in Idaho

KingRay · #14 10-29-2011

Quote:

Originally Posted by cardfelon

I don't think you have any clue what you are talking about. I have gone to a accountant and set up all my businesses which are LLC's with EIN's. Yes the EIN numbers all have my real information on them. And if you had actually gone through the process of giving your tax information to Amazon then you would know that you have to electronically consent to get the 1099 by email or they will mail it out. They clearly lay that out on the website.

I have submitted all the EIN numbers to Amazon and what do you know?? They all got accepted and my accounts are good to go. So until you have done this with Amazon yourself then you need to quit saying that others don't know what they are talking about. All of my posts on this topic are in regards to Amazon and not Paypal. You come off like you are a tax god and the final word on this subject. Other people are just sharing their experiences. Get over yourself!

You are the only one talking about amazon. This post was about PP. read the thing before you throw BS around. When I say they dont know what they are talking about is true nearly all of the time. People like you seem to just encourage people to throw around Businesses like they are nothing.

Keep your hustle to yourself. You are going to get people into trouble telling them to just go slap EIN's on stuff left and right. Glad you half assed figured it out but saying it works now is a joke. Mine worked now too for a month. Then they wanted to verify everything.

I can assure you that you will NOT hide in any way from Anyone under andy business platform.

what is all this Tax God crap too? I always tell people to get with a tax pro instead of telling them what can actually be done. This forum doesnt condone tax and business advise in any way. Your business advice is telling people that you floated through the system with ease throwing Tax ID's around for stealth accounts.

I can almost bet If I was able to dig I would fine you are completely wrong in the way you are handling it. Your deal though. Just dont go around telling everyone that is so easy because they will be hurt by it and it wont affect you at all.

I am trying to help people if you or anyone else is tired of hearing it then leave the forum. Good advice is what many of you need. Not examples of how someone cheated the system and leaving out how it will bit them later if they dont know what they are doing.

guitarca18 · #15 10-29-2011

I love people that say go find a tax pro....Find me a tax pro that has any idea what any of this means. I've spoken to at least six different CPA's and they are all clueless. I ended up doing the leg work, knowledge search, and tax code reading myself to figure out what to do.

KingRay · #16 10-29-2011

Good for you. Now that even the "tax Pros" you think are worthless you think getting info direct on here is better? that is why its directed to someone that knows. That person is not on here.

each persons business is unique and for someone to tell you to do this or that is wrong in every way.

Regardless of what you feel you WONT get the best advice by doing it all yourself with internet research. That is a joke. Have you ever seen the tax code books? If you did you would not bother to try and look it all up on your own.

KingRay · #17 10-29-2011

Forgot to mention a while ago. For that person that thinks any advice is just someone full of it.

The law says that they have to send it to you via mail was for a specific 1099 Form. I think it was the 1099-G but not sure at the moment. With that said then maybe cardfelon was correct ON THAT POINT.

2011 is the 1st year the regular forms can be sent via email. A hard copy is still required in some states though.

jeffweico · #18 10-29-2011

Quote:

Originally Posted by KingRay

Good for you. Now that even the "tax Pros" you think are worthless you think getting info direct on here is better? that is why its directed to someone that knows. That person is not on here.

each persons business is unique and for someone to tell you to do this or that is wrong in every way.

Regardless of what you feel you WONT get the best advice by doing it all yourself with internet research. That is a joke. Have you ever seen the tax code books? If you did you would not bother to try and look it all up on your own.

KingRay is right. Even if YOU YOURSELF were an Attorney and a TAX EXPERT, IRS rules chage all of the time. After a year away from your profession, your advice would be out of date.

There are tons of loopholes (some legal, some not) out there when it comes to taxes. The IRS is not stupid. They know where the loopholes are and are working to close them.

The reason that our more senior members on the forum always advise people to be legitimate is that it is becoming more and more difficult to get away with any type of shady business practices. This new IRS rule will knock out a lot of people selling non-authentic goods. And eBay/PayPal and Amazon are also making it more and more difficult all the time. If you want a long-term business that can provide you with a living, then being legitimate is the only way to go. If you are a college kid doing this for beer money, then abandon your accounts after 50 sales.

guitarca18 · #19 10-29-2011

Quote:

Originally Posted by KingRay

Good for you. Now that even the "tax Pros" you think are worthless you think getting info direct on here is better? that is why its directed to someone that knows. That person is not on here.

I know getting info direct on here is worthless. I come here for inklings in the right direction then I go out and explore those directions with attorney friends...But I will say that most of the CPA's I contacted had never even had any experience with multi tiered businesses with multiple EIN's so I went out and did the leg work and ran it by some corp attorneys....Yes I've seen the tax books and yes they are insane...

GreenBean · #20 10-29-2011

Quote:

Originally Posted by guitarca18

I love people that say go find a tax pro....Find me a tax pro that has any idea what any of this means. I've spoken to at least six different CPA's and they are all clueless. I ended up doing the leg work, knowledge search, and tax code reading myself to figure out what to do.

Considering this 'Tax' was problem was announced in 2009 and considering the forum has always stated it is NOT for professional TAX advice, why are you wanting a hand out to solve your own tax matters.

We are NOT your tax keeper.

I would maybe suggest you contact the IRS to see if they have suggestions.

After all they are professionals.

GreenBean · #21 10-29-2011

Since you think our advice is worthless, per your own words

THREAD CLOSED.