Although BitPay is the leading Bitcoin payment processor in the world, not everyone is pleased with the service offered by this company. Most of that dismay stems forth from specific guidelines BitPay requires users to adhere to if they want to bypass the US$500 yearly limit for accepting Bitcoin payments. But in the end, it is rather easy to adhere to these rules thanks to a recent clarification by the company on Reddit.
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BitPay Requirements Are Less Strict Than Assumed
Most people will have no need to bypass the yearly US$500 limit in Bitcoin transactions on an annual basis, as this service is designed more for people who use BitPay to accept donations or very few payments on a yearly basis. However, things are relatively different for freelancers, content creators, and people who just tend to get more payments than previously expected.
Bypassing this yearly limit is not all that difficult, although it does require users to enter a company registration number. US users might be disappointed to hear they can not enter a social security number to complete this step, as that is not a valid tax ID for BitPay. Granted, for most purposes, an SSN is a valid tax ID, but in this case, a different solution has to be found.
All it takes is registering for an EIN on the IRS website, a process that is rather easy to complete and does not require a particular business registration to obtain. This process is entirely free of charge as well, and having such a number can always be of use at a later stage when dealing with the opening of a business bank account later on.
Moreover, there is no need for any additional info when raising this low yearly Bitcoin transaction volume limit, depending on what level of verification the user wishes to obtain. As long as the earnings remain below US$10,000 per year, there should be no need for quarterly filings or incorporation. Increasing the yearly limit even further will be subject to additional paperwork, though.
Granted, it is rather difficult to judge how much payment volume one will receive in Bitcoin on a yearly basis. However, it should be rather easy for most users to determine whether or not that amount will be above or below US$500. Do keep in mind this limit does not include the conversion from Bitcoin to fiat currency, as it includes incoming transactions only.
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