Paypal and Personal Liabilty Severance

2 replies
Just wanted to share some information about paypal that could be very beneficial to you. I have had a paypal account for over 10 years, and I do 6 figure launches many times a year, my money is always available to me instantly and I've never had an issue.

Other than the rolling reserve paypal hold, which is minor. I can literally access my cash instantly with my debit card.

This long standing account is in my corporation name with its own EIN #.

Recently, I had an issue with my state tax people and I owed them $32,000 for personal tax liability. When I recd. a levy in the mail that they were going to levy my paypal account I had to laugh because I knew they couldn't legally take any personal tax liability of mine out of my corporate paypal account.

Well as some of you know paypal is not a bank and not subject to banking laws.

Long story short the levy took my balance and my rolling reserve!

Paypal gave them every penny!

I was pissed.

Anyway I won't go into the fact that I just gave the state $50,000 and all the details surrounding the levy - just that even with a corporate account and an EIN# PAYPAL still honored a personal tax levy with my social security number - they even gave them my rolling reserve of $9,000.

I wasn't mad at paypal but lesson learned right?

NOW I had to figure out a way to set up my paypal account so that this couldn't happen in the future. This is not so that I can dodge any personal tax liability, its simply so that I don't go out of business.

I have refunds, rolling reserves and other financial responsibility that the corporation must stay on top of, or I risk losing everything.

So here's what I did, and what I figured out.

Fortunately I did this 6 months ago so it was ready when I needed it. But I formed a new corporation and opened a new paypal account under the corp. with the tax ID #.

I funded it with $4,000 (Not necessary) (I actually made payments to it from my other paypal account for copywriting services.)

Never once did I use a soc. sec. #

I did several $500-$800 dollar transactions with the account. I also verified it with the corporate bank account.

Next I verified a credit card/ATM from the same bank account and I was all set.

The only way your soc.sec. comes up is when you ask for a debit card from paypal. DON'T DO THIS.

This ties you and any personal liability to your paypal account!

I then did a small product launch for about $25,000 with a total of 128 sales.

I now have a true to form corporate paypal account that cannot be snatched up due to any personal liability.

Just thought I'd share with some of you who may be wanting to separate your personal liability from your paypal account activities.

Any questions or comments, Ill be glad to elaborate.
#liabilty #paypal #personal #severance

Trending Topics