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Paypal Business Account?

Discussion in 'BlackHat Lounge' started by Euphorix, Sep 7, 2015.

  1. Euphorix

    Euphorix Supreme Member

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    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
     
  2. keinehabe

    keinehabe Supreme Member

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    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 .
     
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  3. CSalt2

    CSalt2 Power Member

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    like pay per click arbitrage or?
     
  4. Yarne

    Yarne Newbie

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    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.
     
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  5. Master Decryption

    Master Decryption Registered Member

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    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.
     
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