Paypal Limited Business Account

[toofun]

Long time watcher on this forum and decided to join today. A few years ago I had my personal paypal limited permanently. I started wanting to sell things again so I created a EIN as a sole proprietor (which I know now was a mistake). It lasted a few months until last week when I then got limited asking for Photo ID, proof of address, bank statements, etc. When I tried supplying those they probably linked me and limited my business account.

My new plan is to create a Multi-Member LLC for my wife and I and get a EIN number for that with a new business address, new business phone, and a new business bank account. I've completely bought a new laptop and my IP address changes daily at my house. This is a legit business and a non-stealth account.

I guess I'm just asking if this sounds like a sound plan to you guys? Also, they shouldn't ask for a Photo ID for a LLC multi-Member business account should they?

thanks so much for your time!!

[BaggaDonuts]

Sounds like it should work fine for PP. You're gonna want to enter your wife's info for the business owner, because they will probably still ask for verification. You'll also want to get a bank account that mails to the business address to connect to the account, and preferably something else like a utility bill that gets mailed to the business address.

[toofun]

Unfortunately my wife has also been limited from PP, that's why I'm hoping to hide our personal info behind our LLC.

And yes I planned on getting the business bank account to mail to the business address. All utility's are paid by the landlord at my business address ... maybe a prepaid business cell phone bill mailed to that address?

Thanks so much for your time.

[toofun]

In today's paypal environment is it still worth it to get the stealth guide? I only use paypal, not ebay or amazon.

[HangInThere]

Originally Posted by toofun

Unfortunately my wife has also been limited from PP, that's why I'm hoping to hide our personal info behind our LLC.

And yes I planned on getting the business bank account to mail to the business address. All utility's are paid by the landlord at my business address ... maybe a prepaid business cell phone bill mailed to that address?

Thanks so much for your time.

As someone who's carried out exactly your plan in the UK with the equivalent of an LLC, I can assure you that a registered company won't provide any further assurance to PayPal - I truly believe any documents that they will ask for about the company are strictly legal requirements of keeping records (perhaps for tax purposes etc).

What PayPal really care about is risk (of losing money from you), so the best way for them to make an informed decision upon review is by checking out the account holder, even though the company is a separate legal entity - the account holder is the only valuable entity they can scan for risk, especially at the start.

Regarding using a family member as the account holder, it's a good idea (I did it too), but only if they have a clear record with PayPal, otherwise when Photo ID comes around, you probably know what's going to happen...

Depending on what kind of sales volume you were hoping to do and how serious it is (full-time or not), it may be worth just taking the stealth approach, though I always encourage appealing limitations where one has done nothing wrong.

[toofun]

Originally Posted by HangInThere

As someone who's carried out exactly your plan in the UK with the equivalent of an LLC, I can assure you that a registered company won't provide any further assurance to PayPal - I truly believe any documents that they will ask for about the company are strictly legal requirements of keeping records (perhaps for tax purposes etc).

What PayPal really care about is risk (of losing money from you), so the best way for them to make an informed decision upon review is by checking out the account holder, even though the company is a separate legal entity - the account holder is the only valuable entity they can scan for risk, especially at the start.

Regarding using a family member as the account holder, it's a good idea (I did it too), but only if they have a clear record with PayPal, otherwise when Photo ID comes around, you probably know what's going to happen...

Depending on what kind of sales volume you were hoping to do and how serious it is (full-time or not), it may be worth just taking the stealth approach, though I always encourage appealing limitations where one has done nothing wrong.

Thank you very much!

[rsot]

Originally Posted by toofun

In today's paypal environment is it still worth it to get the stealth guide? I only use paypal, not ebay or amazon.

Always good to understand stealth and how any platform can link - you can learn a lot from reading forum posts as well

[toofun]

Originally Posted by rsot

Always good to understand stealth and how any platform can link - you can learn a lot from reading forum posts as well

Yes I purchased it and it's a wealth of knowledge. I've already read it once ... but I can tell I'm going to need to read it a few more times.

[agent006140]

if you are just using Paypal and not for AMZN or EBay ,why not apply for a merchant account to accept credit card payments instead of using Paypal?
If you are a Costco member,you can inquire or apply for one cheaper than going to a bank,there are also others offering merchant account besides your bank,look around.
LLC etc would not shield you from Paypal wanting to know who is behind it,and what about sending out 1099 at yearend,if you collect 200 transactions and $20k,Paypal would send out 1099,in most cases ,it will go to the SS number of the owner,

[agent006140]

there are also Google Pay,Apple Pay,not sure what happens to Propay.
ETsy also have its own like AMZN one click,if you open a shop there.

[toofun]

Originally Posted by agent006140

if you are just using Paypal and not for AMZN or EBay ,why not apply for a merchant account to accept credit card payments instead of using Paypal?

Most of my customers prefer paypal unfortunately.

[agent006140]

why were your and your spouse account restricted?

[yankee]

If you are having problems with paypal now, you are going to have more problems in the future. Keep that in mind. Consider changing your methods, customer service or items being sold.

[toofun]

Originally Posted by agent006140

why were your and your spouse account restricted?

I sold a few high priced car parts and had the buyer send as friend and family so I could avoid the fees. Yes I know now ... very stupid. Wish I would have come accross this forum a few years ago.

[toofun]

Originally Posted by yankee

If you are having problems with paypal now, you are going to have more problems in the future. Keep that in mind. Consider changing your methods, customer service or items being sold.

Yes sir I'm going to be MUCH more cautious.