Paypal EIN/LLC question

Here's a little background on what I'm doing.

I do lower cost items- on some I make just a few dollars to up to $15-$20 a order. So the 200/20k paypal tax information thing isn't ideal for my stealth business (spreading sales out across accounts) because of the type of items that I do. Also, the majority of these accounts aren't in my actual name and obviously aren't in my actual address.

So here's my question. If I set up these accounts as LLC's and submit my EIN's for those LLC's to these accounts am I going to have a problem? Not concerned with stuff matching up on Paypal's end. My concern would be that the 1099k that Paypal would send to the IRS might not have my actual name attached to them.

I don't know how this stuff (IRS/Paypal/Tax) works. Any help would be greatly appreciated!

martyjump said:

. If I set up these accounts as LLC's and submit my EIN's for those LLC's to these accounts am I going to have a problem? Not concerned with stuff matching up on Paypal's end. My concern would be that the 1099k that Paypal would send to the IRS might not have my actual name attached to them.

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Paypal won't care. The problem may be with IRS. They allow one EIN to use as a DBA for your sole proprietorship, but if you take out LLC EINs at some point they will want you to operate each EIN as a legitimate business and file tax returns for each of those LLC's and the state may want their cut also.

I'd be fine with running each LLC as a business and filing for each one and paying all the fees (I save a lot in ebay fees this way anyway so it would balance out in the end)

My only concern is the IRS paperwork that would come from Paypal and if they would attach the stealth name to the 1099K form or if it would just be the LLC name. Because if it's in the stealth name that wouldn't be good.

The only way they could link you is if you file each LLC as one member LLC. In some states like Wyoming, you don't even have to file who are the members of the LLC if there are more then one members of an LLC, so how would paypal find out who is behind the LLC?

toml3030 said:

The only way they could link you is if you file each LLC as one member LLC. In some states like Wyoming, you don't even have to file who are the members of the LLC if there are more then one members of an LLC, so how would paypal find out who is behind the LLC?

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I am in Kentucky. How would I file a more than one member LLC if it's just me? I'm not really concerned with Paypal linking me- it's what name they put on the 1099k that get sents to the IRS. These accounts aren't in my name- But everything I would be filing the LLC under is all accurate.

martyjump said:

I am in Kentucky. How would I file a more than one member LLC if it's just me? I'm not really concerned with Paypal linking me- it's what name they put on the 1099k that get sents to the IRS. These accounts aren't in my name- But everything I would be filing the LLC under is all accurate.

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I use the wife. IRS won't care as long as your tax returns are accurate. Also you can set it up so that your LLC's are subsidiaries of other LLC's you own.

toml3030 said:

I use the wife. IRS won't care as long as your tax returns are accurate. Also you can set it up so that your LLC's are subsidiaries of other LLC's you own.

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My problem is that all of my accounts are under all different names. That won't raise a red flag?

martyjump said:

My problem is that all of my accounts are under all different names. That won't raise a red flag?

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IRS won't care what name you're registered with paypal as long as the Tax #'s match and returns are accurate.