PayPal Questions EIN for 1099

SquantoPaco · #1 07-25-2014

Hi, I have been reading the forums trying to find the easiest way to restore my account. Paypal will not let me receive money until I provide them with an EIN or SSN. I have already used my SSN on another account so I am going the EIN route.

1. My Paypal currently is a individual account with a made up name on it. If I change to a business account and attach a EIN with the same name and address will the 1099 form have my made up name or just the business name?

2. Does anyone know what the simplest type of business to setup would be? I was thinking either a LLC or sole proprietorship.

3. Are they're any other obstacles that anyone has encountered while switching from a individual account to a legitimate business seller account?

**aspkin** · #2 07-25-2014

LLC with EIN. The business names must match that of what you have with PayPal.

halotrial · #3 07-25-2014

Quote:

Originally Posted by aspkin

LLC with EIN. The business names must match that of what you have with PayPal.

So should one upgrade to a business account at that point?

SquantoPaco · #4 07-26-2014

Thank you, and just for clarification after I upgrade to a business account the 1099 form will only contain the new business name and address. Correct?

bjammin · #5 07-26-2014

I have always had a ⊗⊗⊗⊗ name on my personal PP account. When it gets to the point and they demand the SSN/EIN, I switch to a business account and use the actual business name as the PP name.

markflood · #6 08-09-2014

Quote:

Originally Posted by SquantoPaco

1. My Paypal currently is a individual account with a made up name on it. If I change to a business account and attach a EIN with the same name and address will the 1099 form have my made up name or just the business name?

Yes I like the answer to this question. How can you have business name show up on the 1099 not the stealth name, can this be done, or is it impossible?

If you can't stealth... is official dead for those that sell over $20,000/200 items

vogeltron · #7 08-10-2014

Quote:

Originally Posted by SquantoPaco

Hi, I have been reading the forums trying to find the easiest way to restore my account. Paypal will not let me receive money until I provide them with an EIN or SSN. I have already used my SSN on another account so I am going the EIN route.

1. My Paypal currently is a individual account with a made up name on it. If I change to a business account and attach a EIN with the same name and address will the 1099 form have my made up name or just the business name?

2. Does anyone know what the simplest type of business to setup would be? I was thinking either a LLC or sole proprietorship.

3. Are they're any other obstacles that anyone has encountered while switching from a individual account to a legitimate business seller account?

Sole Propritorship with EIN the 1099k will have the account owners name on it even if it is a Business PayPal account. 3 years of experience.

I have never heard a anyone testify to the some form of Corporation. I suppose you could call PayPal and ask.

yaar_dost02 · #8 08-11-2014

PayPal will ask affected sellers to update their account(s) by providing a tax ID number, if they don't already have one on file. Your tax ID number is one of these:

Your Social Security Number (SSN)
Your Employer Identification Number (EIN)

Please use the guidelines below to determine which tax ID number to provide. You should use the tax ID number that you use when reporting any taxable income related to your PayPal activity to the IRS.

Business Entities with an EIN

If you operate through a business legal entity such as a corporation or partnership you will need to provide your company EIN and company name.

Sole Proprietors with an EIN

If you operate as a sole proprietor using an EIN you will need to provide your company EIN and your own name. Do not provide a business name or a DBA name ("Doing Business As") with your EIN.

SquantoPaco · #9 08-11-2014

So just to clarify again as there seems to be some different answers. If I set up a LLC for the eBay business and enter the EIN on Paypal as well as my business name and address. Will the 1099 only have the new Business name and address on it?

Judging by others answer on the thread if a sole proprietorship is set up the account name will still be on the 1099. How can Paypal tell what type of Business you have? Do they only put the name on 1099's for businesses set up as sole proprietors?

unkown5454 · #10 08-11-2014

Sole Prop = Your Name
LLC = Business Name

markflood · #11 08-11-2014

Quote:

Originally Posted by SquantoPaco

So just to clarify again as there seems to be some different answers. If I set up a LLC for the eBay business and enter the EIN on Paypal as well as my business name and address. Will the 1099 only have the new Business name and address on it?

Judging by others answer on the thread if a sole proprietorship is set up the account name will still be on the 1099. How can Paypal tell what type of Business you have? Do they only put the name on 1099's for businesses set up as sole proprietors?

Okay, I been researching this for past few days.
This is the answer
If you have a PERSONAL PayPal account, the name you used to sign up will show up on the 1099 (personal name).

If you have a BUSINESS account (LLC, Corp or Partnership) then the BUSINESS name will show up on the 1099.
----
So make sure do this in the long run, don't want incorrect information on the 1099 around tax time.

vogeltron · #12 08-14-2014

Quote:

Originally Posted by markflood

Okay, I been researching this for past few days.
This is the answer
If you have a PERSONAL PayPal account, the name you used to sign up will show up on the 1099 (personal name).

If you have a BUSINESS account (LLC, Corp or Partnership) then the BUSINESS name will show up on the 1099.
----
So make sure do this in the long run, don't want incorrect information on the 1099 around tax time.

I would actually call up PayPal on this one. This would not be a suspicious question at all especially if you are asking them about creating a business that is a LLC. Seems like a very logical question that would not raise any kind of suspicion.

halotrial · #13 08-14-2014

Quote:

Originally Posted by vogeltron

I would actually call up PayPal on this one. This would not be a suspicious question at all especially if you are asking them about creating a business that is a LLC. Seems like a very logical question that would not raise any kind of suspicion.

Someone, call!

rsot · #14 08-14-2014

@halotrial:

jeffweico · #15 08-14-2014

When you apply for an EIN with the IRS, the information becomes a part of their records. Amazon and PayPal (and any other payment processor) will match the EIN with a NAME.

If the EIN is for an LLC, Partnership or Corporation, then the match is made on the BUSINESS NAME with the EIN.

If the EIN is for a sole proprietor, then the match is made on the INDIVIDUAL NAME and the EIN.

Sole Proprietor Matching: JOHN M SMITH, 35-1254187

LLC, CORP, Partnership Matching: Advanced Business Systems LLC, 35-8596547

The reason is that an LLC or a Corporation is considered a legal entity. In the case of sole proprietor, the legal entity is the sole proprietor, even if is JOHN M SMITH D/B/A JOHN'S PIZZA. Registering a DBA does NOT create a new legal entity the same way the creating a corporation or an LLC does.