Simple math.. Income and SSN

[ItzakJano]

Hey there.
Just out of curiousity.

If as a Stealth account i should get to the 20,000 a year income.
and im selling 30usd products.
That means 666 Products sold a year MAX
That means 55 products sold a month MAX

That means im stupid for buying these 1000/25000 limits account
Or is there any getaway with that?

[MM78]

Why is it stupid to buy 1,000/$25,000 account?

Also, Ebay/PP calculates the 200/$20,000 on projected sales...which means that if ebay/pp calculates that you will reach the 200/$20,000 they can ASK for EIN/SSN any time.

Workaround: Get many accounts, spread your sales across multiple accounts.

[ItzakJano]

Ill explain why it isnt affective.

If i buy 1000-25,000$ account, i expect for a 5,000-10,000 sells a month on it at least, otherwise i would have just get a cheaper account.
Lets say ill make the 5,000 a month, in 4 month i already pass the limit of 20,000 and ill be needed to provide SSN

[jeffweico]

Well, you are correct that the 1,000/25,000 accounts would be overkill in your case. But you are making an assumption that you will be able to sell $20,000 worth of merchandise on an eBay account before PayPal will ask you for the SSN. That is not the way it works. PayPal is going to ask you for that before you get anywhere near $20,000. Once their algorithm decides that you MAY go over, they will ask you for the SSN. You will have some time to provide it at that point, but they WILL expect you to enter either an SSN or an EIN.

The best way for you to proceed would be with several smaller accounts. Keep your sales steady on each account with no huge spikes in sales. And don't go over $700 or so in any given month. That should keep you off their radar.

If you start out doing $500 per week, in a few weeks, PayPal is going to request a TAX ID number even though you will not be anywhere near $20,000 in total sales.

[glacier922]

The guy is from Israel by the way. Just like in the movie Casino, hey no records! What are you going to do? Pay taxes now?

[ItzakJano]

Well. 700$ a month, while my profit from sales are 25% is lame.
Wont worth it.
Guess only EU accounts would work for me.
Unless there is a way to Bypass the EIN and SSN? or is it impossible?

[ItzakJano]

Is anyone purcashing these 1000/25000 accounts to the use of sell 10-20 items a month?
What am i missing?

I say, if the account are obviously stealth, than NO ONE can add SSN or EIN on them.
In that case the account wont pass the 200 items limit.
so these account are useless..

Again, what am i missing here/

[ppthump]

Nobody can add a ssn to the account because the name wont match up, but they can register an LLC, then upgrade the account to business and add the EIN. You may be running into an issue of being non-US and trying to run a US accnt. For me its no biggie, other than a $1k bill for each LLC.

Frankly, Im a bit concerned about the limits myself. $25k/year is nothing, esp considering thats gross, not profit. Im not looking forward to juggling 100 of these things. And Id REALLY like to find away around the LLC part, as $800 (for CA) is pretty significant given a max $25k gross per year. Times that by 100 and you are paying $80k/year in fees BEFORE taxes (and its not even tax deductible). Its still less than the profit, but its a big piece. Not to mention, im guessing its a lot of work to "break in" that many accounts, even if you buy them premade, to have to work up from book selling to anything worthwhile.

[ItzakJano]

Well, non US should be told not to buy US accounts.. Waste of a lot of money.
500usd on 2 account (1000/25,000)+ 350$ on 2 Dedicated IP yearly+ a lot of time to make cookies history, and getting feedbacked.
All for nothing.

Guess ill need to find a way to sell these 2 accounts.

[ppthump]

Probably a good idea, although you estimates seem high, and thats across two accounts, so 2x limit.

Of course, if you wanted to make it work you could just get an EIN.

[ItzakJano]

I live in Israel. Is it possible to get EIN without getting arrested by the interpool?

[ppthump]

I dont know international law, but I believe there are plenty of non-US residents who own US corporations.

[rsot]

Originally Posted by ppthump

I dont know international law, but I believe there are plenty of non-US residents who own US corporations.

Definitely true

[ItzakJano]

I guess need to get physiclly to the states the get this all made.
Cant do that though.

[ppthump]

OK, a couple of things, and again, I am not a tax attouney, international law expert, or anyone else you should listen to. So, **** me, get a lawyer.

That said:
-If you are not a US citizen, I dont think you care what the US thinks. As long as you can get a corp setup, does it matter if you break our laws? You probably only care about YOUR laws, so find a lawyer and ask him.

-The US has folks from all over doing business here, and politicians want a cut of ALL of it. So, you can bet they have made a way for you to get a tax ID and pay taxes.I THINK what you want is a TIN (tax ID number), which allows you to pay taxes just like a SSN or EIN would. Check the IRS, do a search, Im sure you can get one.

-http://www.mynewcompany.com/support/Knowledgebase/Article/View/61/7/as-a-non-citizen-can-i-form-a-us-company
They say yes you can get a corp,/llc, you can even do it through them. (Ive used the company, they are fast and competitively priced). I suggest you incorporate in Wyoming. Filing a LLC will cost about $300 all together (including a year service of a registered agent, which you need). The nice thing about that company is if you have multiple companies they have a dashboard where you can keep track of them.

And no, you dont need to come here to set any of it up, although its not a bad trip ) When I was in Israel they set off bomb sirens.... for a drill. all the locals were chill, but they didnt tell the tourists it was a drill so we all **** ourselves.

[ItzakJano]

LoL.
First, Thanks a lot , learned a lot of new ways.
Second. ill keep the optning company trick in mind, in case of getting the limits ill think than if it worth the 300$.
Third, offcourse its not a bad trip, but we're building ourself here to be able to pay for this kind of trip.
And yes, im sure its much safer than Israel these days.

Originally Posted by ppthump

OK, a couple of things, and again, I am not a tax attouney, international law expert, or anyone else you should listen to. So, **** me, get a lawyer.

That said:
-If you are not a US citizen, I dont think you care what the US thinks. As long as you can get a corp setup, does it matter if you break our laws? You probably only care about YOUR laws, so find a lawyer and ask him.

-The US has folks from all over doing business here, and politicians want a cut of ALL of it. So, you can bet they have made a way for you to get a tax ID and pay taxes.I THINK what you want is a TIN (tax ID number), which allows you to pay taxes just like a SSN or EIN would. Check the IRS, do a search, Im sure you can get one.

-http://www.mynewcompany.com/support/Knowledgebase/Article/View/61/7/as-a-non-citizen-can-i-form-a-us-company
They say yes you can get a corp,/llc, you can even do it through them. (Ive used the company, they are fast and competitively priced). I suggest you incorporate in Wyoming. Filing a LLC will cost about $300 all together (including a year service of a registered agent, which you need). The nice thing about that company is if you have multiple companies they have a dashboard where you can keep track of them.

And no, you dont need to come here to set any of it up, although its not a bad trip ) When I was in Israel they set off bomb sirens.... for a drill. all the locals were chill, but they didnt tell the tourists it was a drill so we all **** ourselves.

[dealagreeproceed]

yes you all should go home. your real home

[ItzakJano]

And you should sell with your name, your real name

Originally Posted by dealagreeproceed

yes you all should go home. your real home