Paypal request for Tax ID

[dhunter0294]

Received the email last week requesting. Anyone know how long it takes to get limited after initial tax ID request? I'm going to add an EIN but have to drive an hour to my secretary of state office to form LLC. Going to do it next week should I be ok?

[solefoodbk]

You can always get a EIN from the IRS. LLC is the better option. If its only been 1 week you SHOULD be okay but take care of this matter ASAP. Its a ticking time bomb.

[dhunter0294]

Can I go ahead and get the EIN even though I haven't formed the LLC with my state yet?

[solefoodbk]

You can get the EIN from the IRS for free one time. The reason for it is say you don't want to provide businesses/banks your S.S you can give them your EIN instead. The problem with using a EIN (sole proprietorship) is your name/social security # is attached to this. If paypal has reason to check into your account they can see your name.

Think of it like when you send a echeck from a stealth account from your bank. Paypal can see your name BUT most of the time your okay. Its a matter of them having a reason to check into you account. I recommend to talk to tax profressional for further information.

With LLC Paypal can only see your business name NOT your name or social attached.

Make sure your details match EVERYTHING or you will see many more issuses arise. Everything has to look perfect. Be careful this is a serious matter, its the IRS. Talk to a tax profressional for further information.

[dhunter0294]

Yea i've already went that route on a previous stealth account. I want to form an LLC and obtain EIN. I can't go ahead and get the EIN first?

[yankee]

Drive to the state office??

I do everything online. I have never go to a state office for anything filing businesses.

[yankee]

If you stop selling when they request and move onto another account, you get a reset sometime in late January.

[dhunter0294]

Originally Posted by yankee

Drive to the state office??

I do everything online. I have never go to a state office for anything filing businesses.

Unfortunately my state doesn't have an option to form LLC online. Has to be done in person at the office or by USPS. I may just mail the articles of organization and attach a check. But my question is does the LLC have to be formed before I request an EIN from IRS?

[jeffweico]

Originally Posted by dhunter0294

Unfortunately my state doesn't have an option to form LLC online. Has to be done in person at the office or by USPS. I may just mail the articles of organization and attach a check. But my question is does the LLC have to be formed before I request an EIN from IRS?

No. You CAN get an EIN before the LLC is officially formed. BUT - if the LLC is not eventually formed, you have to notify the IRS. As long as you actually form the LLC at some point in the future, you will be fine.

Make sure you are getting an EIN for a multi-member LLC or other type of business organization OTHER THAN a sole proprietorship.

There is some misleading information going around about the IRS giving everyone 1 free EIN for privacy reasons, since people don't like using their SSN. That is simply not true. ALL EIN's are free. The part about 1 EIN being allowed is only in regard for an EIN registered to YOU as an individual.

EIN's are "Employer Identification Numbers" and were created to allow individuals and businesses to report and pay employment taxes due. For an individual, this could happen if you hire domestic help, like a caretaker for an elderly person, or a maid, or whatever. It also applies to an individual operating a business as a sole proprietorship.

Each legal entity is entitled to ONLY ONE EIN! So, you as an individual can get ONE EIN, even if you have 4 d/b/a's. If you have 10 LLC's, EACH LLC can have their own EIN.

When the IRS verifies an EIN for PayPal or Amazon, they are verifying that the name of the legal entity they have on file matches the EIN. So, if you have an EIN for a sole proprietorship, then the IRS will verify the EIN against YOUR NAME - that is NOT ideal for stealth! In the case of a multi-member LLC, they would be verifying the BUSINESS NAME against the EIN on file. THAT is what we want for stealth. It leaves YOUR NAME out of it.

[rsot]

OP, you should be able to get an EIN online....