Managed Payments, EIN, LLC

[zombiewd]

I started selling stuff around the house on Ebay in 2020. I just received an email telling me that I am now in managed payments and need to update my details. I have an EIN I obtained in my name a few years ago. I would rather provide this than my SSN. With regard to a checking account, to open one with my EIN my bank told me I would have to open a business account which means forming an LLC. If I opened the bank account with my SSN, provided Ebay with my EIN, provided Ebay with the required account number and routing number, would that pass muster ? Legal name would match the bank account and the EIN of course. For the amount I sell on the platform it really is not worth it to me to spend the money necessary to apply for a LLC. Thanks !

[electronics510]

If you are a sole proprietor this should be fine. But keep in mind with this setup you have to report all income under what is seen as a business. Even under the threshold.

Check with your CPA though about the EIN/Personal Bank account combo. I feel like the bank should be able to extend you an account for a sole proprietor. But I've never been that...

[rebell45]

Since an EIN number is an Employer Identification Number it implies a business.  I have my doubts that it would work. If you try it, be sure the names all match exactly on all three, EIN, eBay, and Checking account. I'm assuming your eBay account is an Individual account and not a Business account. All they can do is reject it and still ask for your SSN.

[electronics510]

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@rebell45 wrote:

Since an EIN number is an Employer Identification Number it implies a business.  I have my doubts that it would work. If you try it, be sure the names all match exactly on all three, EIN, eBay, and Checking account. I'm assuming your eBay account is an Individual account and not a Business account. All they can do is reject it and still ask for your SSN.

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You can get an EIN as a sole proprietor and use a personal banking account. I'm not saying this is what I would recommend(sole proprietor is the worst kind of business to be from a tax standpoint, and mixing funds is such a bad idea) but your sole proprietor can have an EIN and a personal checking account.

[wrong66]

Or just give them your SS#. You gave it to PayPal.

[electronics510]

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@wrong66 wrote:

Or just give them your SS#. You gave it to PayPal.

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You gave it to PayPal, therefore it's ok to give it to _whoever_

People have genuine concerns about ebay.

[wrong66]

People who sell regularly, maybe not so much.

[electronics510]

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@wrong66 wrote:

People who sell regularly, maybe not so much.

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You are a big time seller with just your SSN? Ok

[mam98031]

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@electronics510 wrote:

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@wrong66 wrote:

People who sell regularly, maybe not so much.

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You are a big time seller with just your SSN? Ok

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Very possible as a Sole Proprietorship.

[zombiewd]

Wanted to update this. So I updated my info with my EIN and a checking account that I opened solely for Ebay selling. The checking account is a personal one not a business one. Ebay accepted it and I made my first 2021 sale under managed payments. Please keep in mind that I am in no way advocating this method and anyone thinking of doing the same thing should consult with their accountant/financial advisor. 

[mam98031]

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@zombiewd wrote:

Wanted to update this. So I updated my info with my EIN and a checking account that I opened solely for Ebay selling. The checking account is a personal one not a business one. Ebay accepted it and I made my first 2021 sale under managed payments. Please keep in mind that I am in no way advocating this method and anyone thinking of doing the same thing should consult with their accountant/financial advisor. 

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@zombiewd 

There is nothing unusual about what you did.  Many sellers have done that and had no issues with MP as long as the registered name on your Ebay account perfectly matches that which is on your checking account.

There only time a business checking account is required is if you have your Ebay account set up under a business name.

Now if you have your Ebay account set up as a business account but still use your name as the Registered name for the account, you can attach a business OR a personal account as long as the names PERFECTLY match.

[olympian1120]

where are you located i formed my LLC for extremely cheap approx $90

[masham-69]

PAYPAL AND EBAY ARE 1 IN THE SAME

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.