PayPal - Personal vs Business

28 replies
Newbie Question:

Various tutorials have noted that one should start a PayPal business account to begin IMing with ClickBank or any of the other affiliate and/or other marketing opportunities. I already have a personal account with which I buy products and classes and whatnot. Does it make sense to upgrade that to a business account or does one open a completely new account for business purposes? It seems to me that doing so necessitates opening a whole new bank account out in the real world which adds another layer of complexity and expense to the typical spiel of "hey, you can join ClickBank and make a squeeze page with a long tail keyword rich niche domain name for almost no money, yatta, yatta, yatta...". I've yet to hear a tutorial that addresses this question.

I apologize if this is redundant, but my search results yielded no likely matches. :confused:
#business #paypal #personal
  • If your not going to be selling stuff then i would stick with a personal account.
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  • Profile picture of the author Rob Knowlan
    And if I am, then I should? Fair enough. It's just a bit out of sync with the mass of getting started tutorials and articles I've seen. Seems like kind of a big step to gloss over, yet almost all of them do. If I've got to go open a business bank account, don't I have to have a couple hundred dollars to cover the minimum balance just to get the silly thing started? The common wisdom on affiliate marketing is that there's minimal startup cost and risk but now I'm seeing a need for a lot of background stuff that nobody talks about at all. Confusion sets in...
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    • Profile picture of the author BIG Mike
      Banned
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      • Profile picture of the author Rob Knowlan
        Thanks, BIG Mike, for the thoughtful response. I quite agree about taking responses from a forum or eBook with an appropriate degree of generality. I ask only for impressions, broad strokes and statements of personal experience. Legal questions should, of course, be asked of a lawyer and specific financial questions directed to an accountant. I just wanted to get a handle on general "best practices" before I go dashing down what others might already know to be a dead end. Unfortunately, some things are such common knowledge to those in the know that they forget that not everyone knows it. If I seem to belabor a point, it is just in hopes of avoiding an "everybody knows that" newborn pitfall. Your answer was both thorough and considerate and I appreciate you taking the time.

        Thanks,
        Rob
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        • Profile picture of the author Rob Knowlan
          Okay, that's newbie not newborn. My android's spellchecker is pretty aggressive and less than complete. Oops!
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  • Profile picture of the author Rob Knowlan
    Okay, I bit the bullet and simply upgraded my personal account to a business account. Had to make up a bunch of nonsense to fill out the business profile. Again, for those of you who write informational products, tutorial videos, etc. Big step to gloss over.
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  • Profile picture of the author Rob Knowlan
    Thanks, Henry, for the quick responses. Now I can get on with all the rest of this IM newbie stuff.
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  • Profile picture of the author FirstSocialApps
    Now that your a business member you can get a paypal debit card. I have used one for almost 3 years now. Its great and much better than the old withdraw method.
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    • Profile picture of the author Rob Knowlan
      Thanks, Dimachaerus
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    • Profile picture of the author Rob Knowlan
      Thanks, FirstSocialApps, I'll have to think about the card. Gotta start making money before I can spend it.
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  • Profile picture of the author Dimachaerus
    If you plan to do some big transactions, I say go with the business account.
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  • Profile picture of the author internetworld
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  • Profile picture of the author JabMonkey
    Get a business account if you want to sell online. Personal accounts are fine for service related gigs at first.
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    • Profile picture of the author Rob Knowlan
      Thanks, JabMonkey.
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    • Profile picture of the author Rob Knowlan
      Thanks to all who replied so patiently and informatively to my newbie question. Y'all are the best.
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  • Profile picture of the author bizamanda
    If you'd like to start selling stuffs and receive payments in small scale of transaction, I suggest you to upgrade to "premier account" first. It's not as complicated as upgrade to business account. You can have the account under your name, while business account must be under your business name and have to fill in some requirements.

    If later the transaction become bigger, then you should move to "business account'...you should be ready by that time...

    Cheers,
    Bizamanda
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  • Profile picture of the author WeavingThoughts
    Is there any reason why one shouldn't upgrade to business account straight? I don't think so. In fact I recommend moving to a merchant account on the first chance you get.
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  • Hi Mate, Business accounts are the way to go, One problem with Paypal I have found with my business account is if you want to use it to receive money from other various business ventures. You may need to open another account.
    For example:
    I have a Business Paypal account for my wife's business which is Lavinia Lee fashion Jewelry.
    Which I use here to receive payments for my WSO's, the problem is when people go to make payment it say's at the top of Paypal Lavinia Lee.
    Which can be a bit confusing for customers.
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  • Profile picture of the author jaiganeshv
    When usign a business account, make sure you try to operate as much as like a real world offline business from documentation to contact info etc.

    You may not be perfect but try to be as close as how a business operates and make sure all transaction are documented (example, ask clients / business partners to send invoice before making prize money / bonus or other payments). Try to reduce personal payments/ anonymous transactions in a business account.
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    • Profile picture of the author Rob Knowlan
      Jay,

      That's kind of what I was concerned about in regard to upgrading my personal account to business just because it's free. I was thinking there needed to be a wall of division for tax purposes and so forth.

      Has anyone here run into any issues by not splitting the difference?

      Thanks,
      Rob
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  • Profile picture of the author CharlaGibson
    Paypal is one of the best choice indeed. Very safe and you can trust this site.
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  • Profile picture of the author Mac Wheeler
    Why not have both?

    PayPal states quite clearly that you may have an account for personal use and an account for business use.

    I've had mixed issues with PayPal over the years. I've had all the normal problems of account suspensions for no apparent reasons.

    I've also had some cool things happen, like being assigned a personal contact for my business account when it started seeing $10,000+ a week go through it.

    Anyway, I digress, just open both and then your choices are wide open.
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  • Profile picture of the author contentwriting360
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    Rob, Mike's response makes a lot of sense, indeed. In addition to that, it harms nothing if you will seek our experiences. Sometimes, there are things that we already knew but we need somebody else's similar thought to push us forward. Perhaps, you already know that you need to contact PayPal directly but you just need to hear it from us if we already did what you're still thinking.

    You just did the right thing, bro - "asking."

    I ask only for impressions, broad strokes and statements of personal experience.
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  • Profile picture of the author daddykool
    Get both or go Business upgrade if you are have a Premier!

    Keep your PP personal account for personal use

    Keep your PP business account for business use

    Once you get in a position to do so, you can, as advised above, open further Business accounts, which in PP's eyes are in fact seperate entities, thus they make double, triple bubble on the fee's

    Hope that helps
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  • Profile picture of the author Green Moon
    Rob, it is fine that you upgraded your personal account to a business account, but I would advise you to stop using it for personal purposes now. Mixing business and personal accounts is a bad idea.

    If your business activities are so low that it doesn't make sense for you now, be sure to separate the business from the personal as soon as things start getting going. Both you and your accountant will be much happier if there is a clear division between the two.
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    • Profile picture of the author Rob Knowlan
      Thanks for the heads up. Being that I am just getting started, I should be alright muddyinng the waters until the money starts flowing in earnest.

      My more pressing concern is that I am working on some zombie double features using public domainmovies and special features put together by me as part of a fund raiser for my scout troop in association with our annual Haunted House. I have some DVD's to burn by hand but I want to boost sales by posting it for sale through kunaki. All proceeds benefit the Troop. My luck and Murphy's Law being what they are (both generally suck), my dilemma is that this thing will sell like crazy and I will have an artificially inflated income and no personal revenue to show for it. I suppose I should do the kunaki bit through the troop account somehow. A couple hundred I could write off as a charitable donation, but a couple thousand could probably cook my goose.

      Decisions, decisions,
      Rob
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  • Profile picture of the author Marco Yandun
    Thanks for your advice. I just upgraded my PayPal account as well to Business
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    Would you like to know how to get targeted leads for your business for FREE? Watch the video now

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