Paypal Business Account?

Hi there,

I'm running an online arbitrage business. (Service sector)

1. Do I need to register it as a legal business before I begin selling (LLC or w/e) or can I wait a couple months until I've made sales?

2. I want to use Paypal to process transactions. Can I sign up for a business account without a registered business?

3. Because it's arbitrage, I'm wondering whether or not I can sign up for the parent companies reseller/ white label program without officially registering the business. Can I get in trouble for that?

Been searching around online and not finding much. Thanks!

-Phorix

well , at first question is hard to get an answer ... depend mostly about your local laws ... most probably you can deal like private partnership , or llc ... anything what helps you to pay your taxes ( in case if you have to ... ) =))
Second one ... business gaypal accounts are for business actually that's their name right =))? so for that you have to get incorporated .

like pay per click arbitrage or?

You don't need an LLC as long as you are comfortable using your own SSN. If you earn more than $10,000, then Paypal files an earnings form to the IRS.
I generally have people pay also a 3% handling fee which is automatically added on top of the invoice.

It isn't until you start accruing staff, that's when you definitely need an LLC ($100-$500) or a Sole Proprietorship.
Then, you will need to pay taxes on your staff pay, and that is much easier with a business entity.

For an LLC, I suggest Delaware. Read up on them. Very good for many reasons.
Or, if you're cheap but feeling like you won't start something shady, Nevada.

Depends on your countries laws, at the very least I would just talk to an attorney. But usually self service companies are ok until they get big enough for people to want to take a bite of your bread to put it mildly. Had a few start ups that I didn't register or do anything for .. and well when it got bigger.. wasn't a good fit.. so if you have a good idea and you think there is hope well then just do a bit of leg work to protect yourself early on.