Forum

Paypal Soft Limitation - After Switching from personal to LLC
 

I have almost a quarter million in sales the past year. On December 31, 2013 I switched my Paypal account to an LLC. Today, I had this message when I logged in. Any one dealt with this?

Provide information about your account. Why?
You have 6 days to resolve before your account becomes restricted.
Complete the step(s) to provide information in the table below to have your account reviewed.
What can I do while my account is limited?

send money
withdraw money from your account
receive or request money
update your account information
add money to your account
add or remove a card
add or remove a bank account
send refunds
use PayPal logos in your auction listings or on your website
What can't I do while my account is limited?

close your account

Steps to Provide More Information
Date Limited Required Response Status Action
Jan 7, 2014 Photo IDTo help confirm your identity, please send us a copy of your photo ID that shows your name and address. Waiting for your response Resolve
Jan 7, 2014 Proof of AddressTo confirm your address, please send us a copy of a bill that shows your name and address. Helpful documents include a utility bill, a cell phone bill, an insurance bill, or a tuition bill. Waiting for your response Resolve
Jan 7, 2014 Check Email for Additional Required DocumentationWe will send you an email explaining what we need from you to appeal the account limitation. Waiting for your response Resolve

Re: Paypal Soft Limitation - After Switching from personal to LLC
 

Anyone? Can't seem to find anything similar on the forums.

Re: Paypal Soft Limitation - After Switching from personal to LLC
 

So, you have a quarter million in sales on ONE PayPal?

That probably triggered a review of the account so that PayPal could assess their risk, It is called underwriting.

Underwriting means they want to look at your finances and credit to determine if there is a risk to PayPal. If the identity is stealth, then they cannot run a credit report on the account - it will come back "not found" from the credit bureaus.

So, now they want your ID to help resolve the issue.

ALL payment processors do this, but most do it upfront while PayPal does it after the fact. That HELPS US with stealth. But it is also why we advise to keep the monthly sales on any one account to a reasonable level. The more money involved, the higher the risk.

For most merchant account processors, they do this if you are expecting more than $5,000 per month in sales, or if your sales have grown over time to be more than $5,000 per month. What amount triggers it with PayPal I don't know. It seems to be different for everyone.

Re: Paypal Soft Limitation - After Switching from personal to LLC
 

You know what? My bad. I didn't explain my situation better. The account is a LEGIT account. This one is not a stealth. In December, I decided to switch from a personal account to setting the business up as an LLC. Now, my g/f (who setup the LLC) actually did have problems years ago with Paypal and she has herself as a member manager of the LLC. Can I change the LLC to a completely new one and just drop her or is this just a thing they do when people switch from personal to business accounts? I've never been limited and this is a soft limitation because I can still withdraw and send money (for 4 more days). I want to make sure I'm doing the right thing before calling them. There isn't much to go by on here so let me know if anyone has anything they can share. Our sales have been pretty consistent for the past 18 months so there doesn't seem to be a reason for them to limit for $. Plus, I'm just shy of top rated seller gold powerseller for what it is worth. 99.7 pos

Re: Paypal Soft Limitation - After Switching from personal to LLC
 

If your girlfriend had paypal issues in the past and she is listed on the LLC that could be what triggered the limitation. You may be able to get it resolved. Just send them the stuff they need. It sounds like this could turn out in your favor.

Re: Paypal Soft Limitation - After Switching from personal to LLC
 

While you sort this out OP, get few other stealth accounts going and spread the sales