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Should I Upgrade Paypal to Business Paypal?
 

Hello everyone. I have a paypal and Ebay account that I purchased that I linked together. Everything has worked fine this far.

My question is, would it be beneficial or detrimental to attempt to upgrade this personal Paypal account to a Business account. I am getting the 72 hour delay every single time I initiate a bank transfer, and this makes me anxious in fear of not getting my money while it is sitting. I believe that these holds do not occur with the business accounts. I may be wrong here.

I don't have large amounts of Ebay sales going through this particular account compared to most. Maybe 1k a week, give or take, but this may seem a bit much in the eyes of Paypal for a personal account?

BTW, I do have several Ebay accounts, so I am doing my best to keep things spread out as much as possible.

When clicking on the "upgrade to business account", it wasn't asking for a EIN number, just a business name, phone number, and address. If someone could please let me know if this would be a good or bad move.

Thanks in advance. If I left any information of details out that would help with answers, please let me know. I am trying to read as much as possible in the forums to learn as much as I can.

Thanks

Re: Should I Upgrade Paypal to Business Paypal?
 

I recommend going ahead with the upgrade if you're already grossing $1k/week. It would be a lot easier to expand past that number if you upgrade. Because right now, with no tax ID, Paypal is going to stop you before you hit $20k in annual sales.

- Get an EIN from the IRS before you start the process, if you haven't already.
- Make sure you give the EXACT business name to PP
- It may not be on the first page, but you will be asked for your EIN. They have to get that from you because that's how they report your sales to the IRS. Make sure the EIN is correct when you give to PP.

Re: Should I Upgrade Paypal to Business Paypal?
 

Thank you for the reply and info.

When filing for the EIN, I will have to file it under my name because it will ask for a social. I assume that paypal will not be able to link this?

Re: Should I Upgrade Paypal to Business Paypal?
 

That's correct. Paypal shares info with the IRS via your 1099K, but the IRS doesn't share any of your personal information with Paypal. The only info PP gets from the IRS is when a provided tax ID/entity name doesn't match their records.

Re: Should I Upgrade Paypal to Business Paypal?
 

How often? Or should i ask if they send a 1099 form, what happens if you get it after you filed your taxes? Should i wait or do an amendment to my taxes?

Re: Should I Upgrade Paypal to Business Paypal?
 

The holds still occur, just fyi. Nothing changes with respect to that

Re: Should I Upgrade Paypal to Business Paypal?
 

You don't get that "red exclamation point 72 hour withdrawal hold thing" on business accounts. (which is the type of hold referenced)

Re: Should I Upgrade Paypal to Business Paypal?
 

You don't, but that notification is purely cosmetic. Withdrawals are often still subject to the 72 hour "Pending" status if you check your summary page, you just don't see the popup alert for it.

Re: Should I Upgrade Paypal to Business Paypal?
 

My understanding was that 'pending' refers to the fed's notification funds have actually been withdrawn from the PP account.

The transaction can still fail at that point, but that's an entirely different matter.