SS# New rules

[SheilaPazera]

I had a message when I logged in to pay pal saying with the new IRS rules I have to provide a Tax ID# to avoid interupted service in the future--so since its a stealth accout, how do I handle this? i have had this stealth account for almost 9 months

[MM78]

Look into EIN, would be the best and safest way to handle it.

[SheilaPazera]

If I get an EIN do I have to put it in the STEALTH name and if so, how do I very the SS# to get a EIN number--I went to the IRS website and its asking for DOB, SS# etc--

[MM78]

I believe you need to open an LLC then file for the EIN that way, I'm not 100% sure but I believe that's the best way to do it. There are more experienced users that can chime in.

[plumsake2]

When you apply for an EIN you need to put in all of your real information with the IRS. You shouldn't use your stealth name there.

The legal business name is really the only thing besides the EIN itself that you will give Paypal and that they will check to see if there's a match. So pick a business name you like and make sure to use that exact same business name when giving the EIN to Paypal. You don't necessarily have to form a company first to get an EIN -- you can get the EIN now so you can immediately use it.

[aking]

Don't go way left field when it can easily be avoided.

Why go through all the trouble of messing around with an EIN #. The idea is to spread your sales over many accounts, therefore keeping your total sales amount on that account down. If you sell a ****load in a month, the bots will calculate your projected sales amount for the year, and it may put you over the limit for having to report information to the IRS and pay taxes.

You can easily spread those sales over say 3 or 4 accounts and not worry about any of these dreaded acronyms (LLC, IRS or EIN).

Just my 2 cents...

[GreenBean]

Originally Posted by SheilaPazera

I had a message when I logged in to pay pal saying with the new IRS rules I have to provide a Tax ID# to avoid interupted service in the future--so since its a stealth accout, how do I handle this? i have had this stealth account for almost 9 months

Not new rules though.

paypal started this back in 2010.

[nostro]

Originally Posted by plumsake2

When you apply for an EIN you need to put in all of your real information with the IRS. You shouldn't use your stealth name there.

The legal business name is really the only thing besides the EIN itself that you will give Paypal and that they will check to see if there's a match. So pick a business name you like and make sure to use that exact same business name when giving the EIN to Paypal. You don't necessarily have to form a company first to get an EIN -- you can get the EIN now so you can immediately use it.

Do you still have to form an LLC once you get the EIN? Can we get the EIN without forming the LLC? Thanks

[MM78]

I believe you can get 1 EIN via your SSN but that's it. In order to get multiple EIN's you need to have multiple LLC's BEFORE you apply for the EIN.

[nostro]

Originally Posted by MM78

I believe you can get 1 EIN via your SSN but that's it. In order to get multiple EIN's you need to have multiple LLC's BEFORE you apply for the EIN.

Not exactly. I got a couple of EIN's just recently but I would like to know if I will have to form LLCs for them or can I avoid getting LLC's?

[ebaysuck]

Same question bothers me.... opened 3 EINs 2 month ago for amazons and didn't form any LLCs

[xxrange]

Why did you make a thread labelled "BURN EVERYTHING!!!!!!" next time search

[rsot]

Originally Posted by xxrange

Why did you make a thread labelled "BURN EVERYTHING!!!!!!" next time search

?? Wrong thread?

[jjjjj]

Originally Posted by nostro

Not exactly. I got a couple of EIN's just recently but I would like to know if I will have to form LLCs for them or can I avoid getting LLC's?

Question, are you using these for Amazon or PayPal?

I'm not familiar with how amazon works.
But PayPal requires you to upgrade to a business account if using an EIN.

[vogeltron]

Originally Posted by ebaysuck

Same question bothers me.... opened 3 EINs 2 month ago for amazons and didn't form any LLCs

Per the IRS rules you can go to the website and check it out yourself. You are suppose to be allowed one EIN as an individual. The rest must be some form of corporation. Like many people don't file taxes for several years before they get some kind of notification and problems. I would assume the same thing.

[Chuckchamberlain12]

Originally Posted by nostro

Not exactly. I got a couple of EIN's just recently but I would like to know if I will have to form LLCs for them or can I avoid getting LLC's?

In my experience it is not necessary to officially register your LLC with your state. I've read on here that after a year or so of conducting business with the EIN you will need to register the LLC, but I cannot verify this.

I currently have 5 EIN's, all for LLC's. My main account has an EIN linked to an LLC which I've actually paid the $110 to register with my state. The other 4 have EIN's linked to fictitious (non-registered) LLC's, and I've never had any problems with them.

In my opinion, it is worth it to build up accounts (and pay taxes). Unless you are in an extremely profitable niche, I don't see how creating a new account every 200 sales or $20,000 (to avoid paying taxes) is a viable business plan. You never become a reputable seller since you are always "new".

[CDub]

Originally Posted by Chuckchamberlain12

In my experience it is not necessary to officially register your LLC with your state. I've read on here that after a year or so of conducting business with the EIN you will need to register the LLC, but I cannot verify this.

I currently have 5 EIN's, all for LLC's. My main account has an EIN linked to an LLC which I've actually paid the $110 to register with my state. The other 4 have EIN's linked to fictitious (non-registered) LLC's, and I've never had any problems with them.

In my opinion, it is worth it to build up accounts (and pay taxes). Unless you are in an extremely profitable niche, I don't see how creating a new account every 200 sales or $20,000 (to avoid paying taxes) is a viable business plan. You never become a reputable seller since you are always "new".

Lots of expenses associated with "paying taxes" with EIN. Accounting fees, state registration fees, as well as actually paying income taxes (depending on how good or expensive your accountant is). Multiple stealths cost more up front but saves in the long run. Unless whatever you're selling depends on your reputation of course, then being a reputable seller would be worth the extra costs.

[bjammin]

It should also be pointed out that when PayPal reports and when PayPal requests this information is 2 different intervals.

PayPal will request this info once you have come close to 200 sales OR $20k in sales (or sometimes they will project; although I have never had it happen to me)

PayPal will report this info once you have hand OVER 200 sales AND $20k in sales.

[plumsake2]

Originally Posted by nostro

Do you still have to form an LLC once you get the EIN? Can we get the EIN without forming the LLC? Thanks

You can get an EIN without forming a company - the IRS will give you an EIN on the spot, without checking to see if the company exists but yes I do believe you're supposed to either be in the process of forming a company or already have a company if you apply for an S/C Corp or LLC EIN.

Before deciding, it's best to research the different types of companies, as well as the pros and cons for registering a company in a particular state.

Now I can't say for sure that the IRS would care if you don't actually have companies formed to go with the EINs. As long as you pay your taxes then the IRS is happy, but really that's something a tax expert could give a better answer on because taxes are something that you definitely don't want to make a mistake on.