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mnt11592 · 04-27-2007, 04:05 PM

I'm currently starting an ebay business and was considering the legal side of things. Do I need to register as a small business owner, get licensing, submit my SSN or Tax ID if I start an online business? Are these things something to consider? I don't even know what my Tax ID is. If I need to, how to I go about getting these licenses if I'm not even 18 yet?? All Input Appreciated.

Corey Bryant · 04-27-2007, 04:31 PM

Well you will need to get your parents to set up a Paypal account since you are not 18 (legally, you cannot have a Paypal account).

Employer ID Numbers (EINs) might help you out as well.

radreality · 04-27-2007, 05:11 PM

You don't HAVE TO have a business license, but it is recommended. Each state is a little different; in the state of Washington I had a Schedule C license in my name when I was 16. When you are a Schedule C (sole proprietorship) you just use your ssn as your tax id. You don't need an EIN until you employ people or are a LLC or Corporation. As long as you are a Sole Proprietor, the only IRS interaction you will have is for you personally, and its relatively easy to report business income using turbotax or something along those lines, unless you want to hire an accountant to maximize deductions.

Corey Bryant might be right about being 18 to have a paypal account; but if you have a business license and open a paypal business account, you might be able to bypass this.....I don't know though.

Corey Bryant · 04-28-2007, 09:29 AM

You need to be 18 years of age to have a Paypal account. Eligibility and Types of Accounts

Quote:

To be eligible for our Services, you must be at least 18 years old and a resident of the United States or one of the countries listed on the PayPal WorldWide page.

Unfortunately there is no way around this. When they find out, your account will be suspended.

And they will. What happens is someone else who is 18 will get a Paypal account and when Paypal finds out, that user will report someone they know. The other user is unhappy because Paypal (rightfully) suspended his account. Or Paypal monitors boards, sees users who are under 18 and using Paypal. Only takes a few minutes and then your business could be gone.

The way around it is to have your parents sign up for a Paypal account.