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PayPal Business/Merchant Account Question

Discussion in 'Business & Tax Advice' started by tixpf, May 30, 2014.

  1. tixpf

    tixpf Regular Member

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    Hi there,

    a while back I created a couple of SEO service reselling sites (churn & burn) and they worked quite well for me. Back then I was using my private PP account.
    Today, I've got a PP business account (or merchant account, I don't know the correct translation).

    However, my reselling earnings right now are rather small and I'm wondering if I should be using a private (non merchant) PayPal account to avoid fees + tax reports.
    Or in other words - is there any risk if I keep using my merchant account (and vice versa - using a private PP account for this)? Does PayPal report to local/national tax offices in the countries where the account holders are located?
     
  2. srinu0812

    srinu0812 Supreme Member

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    As far as my knowledge is concerned, business account means less fees to PayPal if your transactions go past $3k and beyond.

    I have been using the business account and if there are no earnings, nothing happens. In other words, there is no risk even you are an individual/business account holder. Your earnings will be recorded and will be linked to your SSN no matter what type of account you use.