Help with Paypal Business Account

[okhan]

I am starting my own Shopify store and want to link Paypal with it to accept payments. It wants me to login with a business account to link it. Currently, I have my own personal stealth account that is aged with no limits and I've been receiving/sending money through it regularly. I was wondering if I should just upgrade this account to a business account or create a new Paypal business account with another email?

I'm concerned that if I start receiving more regular/larger payments on my stealth account, they will ask for identity proof or other documents. My concern with opening a new business account would be that they can limit me very quickly and hold my money for 21 days. Can someone advise me on which route to take?

 

[Rachmaninoff]

Always separate your personal and business accounts. Better safe than sorry.

So create a new one with a new email.

 

[okhan]

Always separate your personal and business accounts. Better safe than sorry.

So create a new one with a new email.

What if I owned a Paypal account under my name previously that is banned now? Would I be able to start a business Paypal account with that same name or will I need to get a stealth Paypal business account? Also won't I have 21 day holds on the new business account then?

Also what are tax implications of running a stealth business account? Should I just try opening one under my name and seeing if it works?

 

[Rachmaninoff]

You can use your sister/brother/father/mother's name instead.

Read this why your payments being held for 21 days https://www.paypal.com/us/selfhelp/article/why-is-my-payment-being-held-for-21-days-faq3236

And this to release held payment faster https://www.paypal.com/us/selfhelp/article/can-i-cancel-a-paypal-payment-faq1987

Not sure about tax implications one. I live outside the US. But this article should help https://www.paypal.com/us/webapps/mpp/irs6050w

 

[okhan]

You can use your sister/brother/father/mother's name instead.

Read this why your payments being held for 21 days https://www.paypal.com/us/selfhelp/article/why-is-my-payment-being-held-for-21-days-faq3236

And this to release held payment faster https://www.paypal.com/us/selfhelp/article/can-i-cancel-a-paypal-payment-faq1987

Not sure about tax implications one. I live outside the US. But this article should help https://www.paypal.com/us/webapps/mpp/irs6050w

This is my plan as of now. I will start the Paypal business under my real name/business name, but with all different info such as address and phone that link only to my business. I will then apply for an EIN through the IRS using my personal SSN info. I will use that EIN for now on the Paypal account.

Later, if my business grows bigger, I will apply for an LLC and get a new EIN for that. I will then update my Paypal with the new EIN and explain to them that it was cause of getting a new LLC.

If I start getting 21 day holds, I'll just have to deal with it until my account gets fully verified and such. Thanks for the helpful links by the way!

 

[Rachmaninoff]

You're very welcome. Good luck to you anyway.

 

[ronald_aman]

You should own 2 different accounts

 

[Black Orange]

Create a new business account on paypal.

 

[toml3030]

You can use your sister/brother/father/mother's name instead.

You should be careful with this. You don't want your sister/brother/father/mother to find out that they've been issued a 1099 by Paypal and IRS now wants to know why it wasn't reported in a tax return.

 

[Rachmaninoff]

You should be careful with this. You don't want your sister/brother/father/mother to find out that they've been issued a 1099 by Paypal and IRS now wants to know why it wasn't reported in a tax return.

I have two 5 year old accounts under my sisters name. I don't have issue with tax/IRS or whatever it is as I don't live in the US. So yeah it depends on where you live as well. And I also gave the IRS link above that explains pretty much about tax.

 

[ViridWeb]

Yes you should go with separate accounts for personal and business uses..
Just follow what LatteGrande said and I don't think you will face any kinds of trouble..
Best of luck!!

 

[hannex]

You will be on a safer side with a business account.