If you can meet the criteria (VAT number, Invoices etc) and you are selling 'proper' (ie: not foo-foo or VERO) then it can be a good idea. Particularly Limited Company.
That represents the business model that PP and EB prefer. All of a sudden you are elevated from being a home seller to a legitimate trading entity. The address issue is something you need to look at.
I currently run 2 out of 3 ste alth on this basis but I am selling tangible products and I do offer good service. My DSRs are very high.
It can be a very expensive way of setting up but the longevity is excellent. I would not suggest it for VERO or foo-foo. You really do need to have everything in place before starting it as you will probably need to invest a bit of money and you don't want to waste it because you were unprepared.
Earlier this year I sold one account that I had set up as a complete package, include a website, to someone on one of the other forums and she has taken it from strength to strength and when I goofbayed it just now she is taking over £5k a month off the auction site alone.
You need to do a lot more homework and be very confidant in your ste alth abilities but it can be a good investment   | 
