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Cert. of good standing required by Ebay for a business acct. in TX but is sole proprietorship
Texas comptroller's office no longer uses the term, "certificate of good standing" but used to refer to a certificate issued by the Texas Comptroller of Public Accounts regarding a business's franchise tax account status. The comptroller's office now refers to these certificates as "certificates of account status." That being said, these certificates are only available for businesses that fall under the Texas franchise tax laws. A sole proprietorship that is NOT an L.L.C. is not included and therefore, the state comptroller cannot issue a certificate of good standing or certificate of account status for a sole proprietorship business account.
The Secretary of State can issue a "certificate of fact - status", which is a certificate that serves as official evidence of an existence or authority to transact business in Texas. A certificate of fact - status provides a statement of a business's status, as well as the business's current legal name and date of formation or registration.
My issue is, I upgraded an account to a business account, Ebay won't approve it until I produce a certificate of good standing. I've explained that I cannot get one and gave the reasons listed above. So far, they will not accept anything other than that certificate. Now I have a hefty sales income that I can't access in my account and I can't return the account to personal, even though Ebay won't open it as business without their required cert., so my account is basically frozen as far as spending funds on Ebay or moving the funds to my checking account.
Has anyone else dealt with this issue? Any suggestions as to a contact person that can straighten this mess out? I can't produce documents that aren't available in this state. And Ebay is sitting on my money with no answer as to how I am to get it back.
eastlaneave
Mentor1 year ago@maestro8910
Checking in again.
Be sure to register for Seller Check-in on March 7
maestro8910
OP1 year agoFinally resolved this. Genny, Mr. Iannone's assistant, had looked into things and confirmed that my account did state I was a sole proprietor; she said that should have been caught by the system so the correct info was asked for. She said that was handed over to their technical crew to address and correct on their end. All paperwork was accepted as proof of a business in good standing, my account has been confirmed as a business account, the funds being held were released, and the deposit hit my bank yesterday. So after almost two months of fighting with people that didn't have a clue what they were doing, the office of CEO was able to fix the problem. And recognized that the issue should never have occurred in the first place. Hopefully, the tech crew has fixed the glitch so this wont happen to anyone else. Thanks for you input and interest in the outcome. And I'll look into registering for that Seller-Check. Thanks.
eastlaneave
Mentor1 year ago@maestro8910
Any updates on this?
maestro8910
OP1 year agoYesterday got a notice from Ebay that my account has been frozen because they "haven't been able to get in touch with me" and I "haven't supplied them with requested information", even though I sent in everything I had available to me, and have been in contact with someone there several times. Last week I emailed the CEO, CFO, CBSO, and a couple of more offices, all of the documents I'd submitted, along with a blow by blow of what I've been dealing with with Ebay's request for docs that don't exist for my business status, their allowing the account status change without documentation, the freezing of $5000 in sales revenue that I can't touch, my 26 year history with them and my 100% feedback rating, etc., etc.
This morning I got a message from the CEO's secretary stating that he, Mr. Iannone, wanted her to handle this issue. She said that usually the only recourse is to create another account, but with my history, they want to find a way to rectify the situation. After getting the "frozen account" email yesterday, I was going to draft a demand letter and follow up with a small claims lawsuit, but I'll put that on hold for another week and see what happens.
eastlaneave
Mentor1 year ago@maestro8910
This morning I got a message from the CEO's secretary stating that he, Mr. Iannone, wanted her to handle this issue.
This is good news. Jamie Iannone is the right person to assist.
Register and attend Seller Check-in, too. It's a way to speak directly with leadership. Hopefully you account will be fixed before then, but sign up now.
https://sellerevents.ebay.com/events/details/ebay-ebay-seller-events-presents-spring-seller-check-in-1/
eastlaneave
Mentor1 year ago@maestro8910
Did this situation get resolved?
maestro8910
OP1 year agoYes, I sent a message on Feb. 25th. The message is below:
Finally resolved this. Genny, Mr. Iannone's assistant, had looked into things and confirmed that my account did state I was a sole proprietor; she said that should have been caught by the system so the correct info was asked for. She said that was handed over to their technical crew to address and correct on their end. All paperwork was accepted as proof of a business in good standing, my account has been confirmed as a business account, the funds being held were released, and the deposit hit my bank yesterday. So after almost two months of fighting with people that didn't have a clue what they were doing, the office of CEO was able to fix the problem. And recognized that the issue should never have occurred in the first place. Hopefully, the tech crew has fixed the glitch so this wont happen to anyone else. Thanks for you input and interest in the outcome. And I'll look into registering for that Seller-Check. Thanks.
eastlaneave
Mentor1 year ago@maestro8910
Thank you for letting me know, and yes it shouldn't happen that way.
I hope you have paved the way so others won't experience this issue.
eastlaneave
Mentor1 year ago@maestro8910
" it specifically asks for the business name to switch the account and you have to add it in order to upgrade. I typed in the name on that page. That's the only place and time I typed in the business name. "
I *think* this is why eBay is running you in circles. I am not sure exactly the question was but if you "business name" (not your store name or username) for eBay is
"Bob's Boats and more"
Then they are looking for some proof that "Bob's Boats and more" is a valid registered name and later, they will want to see a business checking account in the name "Bob's Boats and more"
If the documents don't satisfy eBay
1) Is there an option to edit your Business Name back to "your name"?
2) If you are still stuck, please keep us updated so we can advise what to do next.
I'm sorry this is happening.
eastlaneave
Mentor1 year ago@maestro8910
Let us know how it comes out
maestro8910
OP1 year agoEvidently the SOS was wrong. The county clerk's office doesn't have access to those types of records and couldn't help. Got a certified copy of my DBA while there, and they suggested I contact the state comptroller. After a lengthy explanation to the comptroller's office, they said what should work is a "Certified Status for a Sales Tax Account" letter, which would bear the Ebay required state seal and signature. It'll take 10 days to get here, then I can submit everything to Ebay and see if that works. Hopefully it'll be enough to satisfy them.
eastlaneave
Mentor1 year ago@maestro8910
Is your DBA listed on your eBay account in any place other than "store name" or "User name"?
maestro8910
OP1 year agoNo, not to my knowledge. Prior to the "switch", it was no where on my account. My frustration is that Ebay has asked for state certified and sealed documentation that is not available to a sole proprietor who does NOT have an LLC. Had I been an LLC it would have been no issue since as such, my business would have fallen under the Texas franchise tax laws, and the state comptroller would have had the ability to issue the certificate of fact - status document. The problem is that Ebay needs to update their requirements to include documents available to sole proprietors, or make it exceptionally clear that ONLY business that can acquire the required documents can open or switch to a business account. Ebay should never allow a business account to be created at all if those documents can't be produced first. They are asking for something that isn't even available in the state of Texas, but I had no knowledge of that until after the switch when they asked for it. Since they asked for these documents after they allowed the private account switch to a business account, the account should revert to the private account it had been. If I open a new private account, I will lose my many years of excellent rating/standing and start over at square one. I am hopeful the documents I'm waiting on will suffice.
eastlaneave
Mentor1 year ago@maestro8910
I agree with your statements about the account shouldn't switch unless the documents can be provided.
I just wanted to be sure you didn't type your d/b/a anywhere on the registration page.
I am very curious about this since if I have to reverify and am asked for these same documents, I want to know what I would need to do.
maestro8910
OP1 year agoWhen I originally registered with Ebay in 1999, it was only a personal account, and there was no mention of a DBA in that registration. When I upgraded to the business account last month, it specifically asks for the business name to switch the account and you have to add it in order to upgrade. I typed in the name on that page. That's the only place and time I typed in the business name. I hope that answers your question. I'm still waiting on the documents mailed by the Open Records Department of the state comptrollers office. Once submitted we'll see if they are accepted. I'll let you know if they are so you'd know what to ask for if needed in the future.
comics-scifi-collectibles
Mentor1 year ago@maestro8910. Let me phone a friend as I know there's a fairly new law for business sellers.
@eastlaneave
Can you help with this?
eastlaneave
Mentor1 year agoI don't know the answer to this.
@maestro8910 Are you using a Business name?
I am a business seller, but I switched many many years ago 15? maybe.
I am a sole proprietor and wouldn't be able to get anything from my State SOS.
My business is just my name on eBay (it's not my d/b/a)
Business type is sole proprietor
I have a business checking account (which was another hurdle, but again long ago)
(PS, I wouldn't recommend anyone choose Business right now. It's not necessary and you an be a business without choosing that status on eBay)
maestro8910
OP1 year agoThanks for getting back to me. I'm set up the same way as you are. Secretary of State says I should be able to get what I need from the county that my DBA is registered in. Will check on that today. Had I known what a mess this would become, I never would have changed my account.