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Paypal about to ask for EIN

Discussion in 'Business & Tax Advice' started by tommymcnick, May 8, 2015.

  1. tommymcnick

    tommymcnick Newbie

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    Hey Guys,

    I'm about to get hit with the paypal EIN request. I'm using ebay stealth so giving my SSN is not an option. I'm from Illinois and an LLC is $500. Do I have other options?
     
  2. johnking200

    johnking200 Newbie

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    You don't need an LLC to get an EIN. You can apply online at the link below. Note that it is only available 7AM - 10PM EST.

    https://sa.www4.irs.gov/modiein/individual/index.jsp

    P.S. Don't lie to the IRS.
     
  3. Shadexpwn

    Shadexpwn Elite Member

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    You can get an EIN from the irs instantly without a company or registered corporation with using your social security number with the above link.

    Make 100 if you want, they will all be different.
     
  4. tommymcnick

    tommymcnick Newbie

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    OK thanks! Will paypal be able to link the two my real paypal and fake paypal? Note: I'm doing this EIN with a stealth account so the ebay and paypal names are fake but my EIN would be real of course. my concern is paypal will see the names are different on the EIN and the paypal name and immediately ban it, no?

    I'm sure that was pretty confusing.

    Thanks for the help
     
  5. burnett4congress

    burnett4congress Regular Member

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    You can get an EIN under your personal identity like johnking200 says, but the problem there is that you'll be paying 15.3% self-employment tax on top of your income taxes. If you are actually making money, it's far cheaper to incorporate and use the corporation/LLC's EIN.

    With an online business, you aren't tied to opening to opening the corporation/LLC in your home state since you don't need a physical presence. Depending on how you set up your business, you will still most likely be taxed in your home state.
     
  6. tommymcnick

    tommymcnick Newbie

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    O ok I see! Now I heard that an LLC in Nevada is not only cheap but there is no income tax... is this true? I also will be making about 10k profit if I'm lucky this year.. I do have a vacation in Florida I could use too.. I believe FLA doesnt have income tax either.
     
  7. tommymcnick

    tommymcnick Newbie

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    and Yes I will definitely being using my real info however, if my EIN says (Joe Doe) <- Real Name and my Paypal account says Michael Jordan <- Stealth Name.. isn't paypal gonna flag this right away since the names don't match?
     
  8. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    How do you know you're "about to get hit"?
     
  9. K.H.R

    K.H.R Jr. VIP Jr. VIP

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  10. tommymcnick

    tommymcnick Newbie

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    OK Thanks but I thought by opening a basic EIN Paypal will be able to see my true banking identity. If this is the case then they will be able to link me because my Bank Account or EIN and paypal name will not match. is this true? If so then I need to open an LLC right? Second question is I have a vacation condo is FL. Could I use that since I heard FL has no income tax?

    Thanks guys
    Tom
     
    Last edited: May 8, 2015
  11. InnovativeSEO

    InnovativeSEO Senior Member

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    No they will NOT be able to see your true banking identity. As suggested above, go online during the day with the IRS and get an EIN, give it to PayPal and you are good. Make SURE you do not overlap any information you provide them on each account such as email, address etc. Also....from experience running 2 PP accounts-do NOT use the PayPal mobile app, because that thing is a monster and should you have info that links to account 2 on the phone then you will have an issue. Otherwise you are good to go.
     
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  12. tommymcnick

    tommymcnick Newbie

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    Thank You! so a sole proprietorship should be fine and they wont see that I'm not only stealth but using a completely different name? I also heard that I'm allowed to change my name to a business name ONCE. and everything needs to match perfectly correct? I could also use my Florida vacation address probably right? Also, I'm confused about "the don't overlap any information on each account"... Are you talking about paypal or my banks or both? my two paypal accounts are 100% different in everyway. But when making the EIN Im obviously using my real info right? Paypal can only see my EIN Number but nothing at all about my bank info. right now my stealth paypal and my real savings account are attached to each other with different names address etc but Paypal has no idea because all they see is a Bank # nothing else. Plus I dont add money into the account I just withdrawl.

    Thanks!
     
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    Last edited: May 9, 2015