1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

What are the requirements for a EIN number?

Discussion in 'Business & Tax Advice' started by bigcasey123, Aug 6, 2013.

  1. bigcasey123

    bigcasey123 Regular Member

    Joined:
    May 23, 2011
    Messages:
    438
    Likes Received:
    175
    Occupation:
    manwhore
    Location:
    Uranus
    I want to get a EIN number (just in case my paypal gets hacked then my ssn would be safe) do i need a registered business to get a EIN number? or can i just get one online? Also what happens when i get the EIN number? will paypal start reporting my income to the IRS? If so when do i need to report the money i made? every day, month, or year?
     
  2. mdsurf

    mdsurf Senior Member

    Joined:
    Jun 16, 2011
    Messages:
    990
    Likes Received:
    279
    Location:
    Las Vegas
    you get an EIN number by registering a business. think if of like a social security number for your business, it is a unique number that your company is linked to and identifies it. you can get one online by registering your business through a site like legal zoom. paypal does not report your income to the IRS, you are responsible for doing that
     
  3. lloughry

    lloughry Regular Member

    Joined:
    Jan 23, 2013
    Messages:
    337
    Likes Received:
    100
    fully expect the IRS to be aware of any money that runs through your paypal account
     
  4. InnovativeSEO

    InnovativeSEO Senior Member

    Joined:
    Feb 5, 2013
    Messages:
    860
    Likes Received:
    3,752
    Occupation:
    Business development
    Location:
    New York City
    You can just get one online actually, although they will ask you questions about it, it is NOT required to have it already setup and completed. PayPal has never been an issue, and if handled properly, you'll not have one.
     
  5. InnovativeSEO

    InnovativeSEO Senior Member

    Joined:
    Feb 5, 2013
    Messages:
    860
    Likes Received:
    3,752
    Occupation:
    Business development
    Location:
    New York City
    Actually that has changed, they have to once the gross received exceeds $20,000. Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year. In order to help you understand these changes, we have prepared the following FAQs.
     
    • Thanks Thanks x 1