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Help with Paypal Business Account

Discussion in 'Business & Tax Advice' started by okhan, Jul 14, 2017.

  1. okhan

    okhan Newbie

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    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?
     
  2. LatteGrande

    LatteGrande Jr. VIP Jr. VIP Premium Member

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

    So create a new one with a new email.
     
  3. okhan

    okhan Newbie

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    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?
     
  4. LatteGrande

    LatteGrande Jr. VIP Jr. VIP Premium Member

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    • Thanks Thanks x 1
  5. okhan

    okhan Newbie

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    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!
     
  6. LatteGrande

    LatteGrande Jr. VIP Jr. VIP Premium Member

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

    ronald_aman Newbie

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    You should own 2 different accounts
     
  8. Black Orange

    Black Orange BANNED BANNED

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    Create a new business account on paypal.
     
  9. toml3030

    toml3030 Elite Member

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    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.
     
  10. LatteGrande

    LatteGrande Jr. VIP Jr. VIP Premium Member

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    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.
     
  11. ViridWeb

    ViridWeb Jr. VIP Jr. VIP

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    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!!
     
  12. hannex

    hannex Registered Member

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