Paypal question

Cdman · May 27, 2012

Hi,

I write articles and sell links on some of my sites. Most of the time I get paid into PayPal, but I've just reached ?1,800 so they want more info. They just want me to tell them whether I am :

An individual consumer, refers to any individual or household that is not a business, legal entirety or other type of organisation.

A sole proprietor.

Any other type of business, charity or government entity.

What do you think I should do? I'm not really a business, am I?

MarketingMagician · May 27, 2012

Try putting your personal name as the business name.

Cdman · May 27, 2012

MarketingMagician said:
Try putting your personal name as the business name.

See I just don't know, I'm not a business but I'm not really a consumer either since I do receive a decent amount of money into Payapl.

MarketingMagician · May 27, 2012

You are a business, because you've been paid for your services.

Cdman said:
See I just don't know, I'm not a business but I'm not really a consumer either since I do receive a decent amount of money into Payapl.

Cdman · May 27, 2012

MarketingMagician said:
You are a business, because you've been paid for your services.

Yeah that's true. But they don't need any proof that I run a business do they? Because I never created a business etc

MarketingMagician · May 27, 2012

Well, you can convert it to a business account, because if you do that, your account will truly be unlimited.....that's what I did.

All I provided was ID, and proof of address.

Cdman said:
Yeah that's true. But they don't need any proof that I run a business do they? Because I never created a business etc

Cdman · May 27, 2012

MarketingMagician said:
Well, you can convert it to a business account, because if you do that, your account will truly be unlimited.....that's what I did.

All I provided was ID, and proof of address.

Thanks a lot for the help.

They've already got my ID and proof of address by the way

(had issues with them before!)

I might spend the money that's in the account then change to business just to be safe

Exaggerated · May 27, 2012

You are indeed offering services and earning money from it so you can be considered as a business type.

PS: Business type has some pros and cons too. Pros: Higher limits, low chances of getting limited (if you are receiving below $10k) Cons: High fees, alot of complications on the account but you'll get used to it. Part of their security measures.

Cdman · May 27, 2012

Exaggerated said:
You are indeed offering services and earning money from it so you can be considered as a business type.

PS: Business type has some pros and cons too. Pros: Higher limits, low chances of getting limited (if you are receiving below $10k) Cons: High fees, alot of complications on the account but you'll get used to it. Part of their security measures.

Ah, are the fees even higher on a business account

? Can you receive gift payments on a business account?

marusia · May 27, 2012

I didn't receive gifts when I was business.

When I was selling decent amounts on eBay, my PayPal was set up as a sole proprietor. They use your SSN.(if you're American.) my business was registered though. Not sure how the currency exchange is, but PayPal reports at 200 transactions and 20k usd. See what it is in your country, and if it's higher than you think you'll make, I'd just say individual consumer unless you have a registered business, just mho.

Blacklp · May 27, 2012

Great information about paypall i'm just setting up my paypall acount so this info is very usefull. Thnx

Zuckerberg · May 27, 2012

You're not a business because you're not a registered company..

Cdman · May 27, 2012

marusia said:
I didn't receive gifts when I was business.

When I was selling decent amounts on eBay, my PayPal was set up as a sole proprietor. They use your SSN.(if you're American.) my business was registered though. Not sure how the currency exchange is, but PayPal reports at 200 transactions and 20k usd. See what it is in your country, and if it's higher than you think you'll make, I'd just say individual consumer unless you have a registered business, just mho.

Yeah. I was talking to PayPal about my account before and I'm pretty sure they said something about upgrading to a business account even though I'm not exactly running a business.

It's a bit confusing

Cdman · May 27, 2012

Zuckerberg said:
You're not a business because you're not a registered company..

Yeah I know that but I think PayPal think that you shouldn't be regularly receiving money if you have a normal account. And I do regularly receive money.

terry_oi · Jan 2, 2013

Cdman said:
Yeah I know that but I think PayPal think that you shouldn't be regularly receiving money if you have a normal account. And I do regularly receive money.

Hello everyone and sorry about bringing up an old thread but i'm in the same situation and not sure what to choose.. What did you end up doing after all? I'm mostly earning through fiverr (not great amounts though) and wanted to know what's the best option.. Also is it possible to change this afterwards if say i choose 'individual consumer' now and make it 'sole proprietor' later?

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