PayPal for Business is an advanced tier of the online payment system. It gives you access to more features, such as setting up an ecommerce website, higher transaction limits, and extra protection for sellers. This guide covers everything you need to know about creating a PayPal Business account.
FYI: learn how to set up a PayPal Personal account.
Content
- What Is PayPal Business?
- How PayPal Business Differs from PayPal Personal Accounts
- How to Switch Between PayPal Personal and PayPal Business
What Is PayPal Business?
A PayPal Business account is set up in your company’s name instead of your own personal name. This account level is helpful for all kinds of businesses, whether they sell online or in physical stores. But you can also sign up your business as a sole proprietorship, a nonprofit entity, or just a casual seller.
To go to your PayPal Business dashboard after login, click your profile name on the top right, then go to Account settings -> Business Profile -> Business information -> Business information -> Update. You can view all your business-related information in one place. To change any of the details, click Edit next to an entity, and update the fields.
PayPal Business offers extra features, like many more ways to pay, to meet the unique needs of your business. For example, a recurring payment for online subscriptions. It also allows more than one person to use the account and integrates with hundreds of tools. These include checkout services through API credentials that help customers pay on websites and apps.
With a PayPal account for business, you don’t have to worry about transaction limits. However, each transaction is capped at $60,000 for verified accounts.
FYI: learn more about Wise money transfer solutions.
How PayPal Business Differs from PayPal Personal Accounts
PayPal Personal is strictly used for limited transactions with family and friends, and some casual selling, whereas the business account offers many more privileges to run your own business properly. With a PayPal Personal account, you can access all regular sending and receiving features, but a business account has a decisive edge.
| PayPal Business | PayPal Personal | |
|---|---|---|
| Transaction limits | $60,000 per transaction with no withdrawal limits | $4,000 per transaction, with withdrawals capped at $500 per month. |
| Multi-user login | If you have a valid E.I.N, you can have up to 200 employees with separate login access. | It supports seven personal email addresses. |
| Uses | Online payments, business invoices, online checkout services, international payments, freelancing, and consulting services. | Paying family and friends, splitting payments using Venmo and other wallets, gifts, and transferring the balance. |
| Fees | Attracts higher fees at 3.49% for payments made via PayPal, Pay Later, Venmo, up to $30 per month for Payments Pro | Comparatively lower transaction fees. PayPal to PayPal is free, as is bank account to PayPal. (U.S. domestic only.) |
| Integrations | Easier to integrate with website hosts and payment carts. | No such integrations possible. |
| Payment methods | Additional payment modes, such as cryptocurrency, PayPal Credit, and Pay Later. | Only supports a funds transfer via PayPal, Venmo, credit cards, and bank accounts, |
| Account creation fees | None | None |
| Security protection and customer service | Fraud protection services, Sending disputes to management, customer service from 8 a.m. to 8 p.m. Central time Monday through Friday. | Only text support, online forum, and transaction resolution (via email). |
Clearly, knowing how to set up a PayPal Business account has many advantages. As shown in the section below, consider migrating from a PayPal personal account for the added benefits.
Good to know: is PayPal not the best payment solution for you? Check out various alternatives.
How to Switch Between PayPal Personal and PayPal Business
You can initially create a PayPal for Business account during registration. However, it is also a straightforward and quick way to upgrade from a PayPal Personal to a PayPal Business account. You don’t even need to own a valid business to start if you’re registering as an individual.
After signing in to your personal account, click your Profile, and go to Account Settings. You’ll see the Upgrade to a Business Account option. Confirm that your personal account is verified, and you’ll be all set with your email, phone numbers, bank accounts, and credit cards before you start.
After you click Next, you’ll be asked which email you want to use with your business account. You can choose a new email address, preferably a business one, or opt to use your current email to switch to a business account. This will automatically close your PayPal Personal account, but all your previous account histories, including transactions, will migrate to a new business account. Any balance will also carry forward to the business account.
You’ll be asked to supply basic information about your business. Insert your Business Name. It’s important to use the same name that you have on your business bank accounts. This will help you move money easily in and out of your bank account.
Enter your Business type. While you can choose Corporation, Partnership, Nonprofits, etc., it’s easy to start with Sole proprietorship.
There are many benefits to choosing the last option. In the U.S., if you have a registered business with employees, you will need to give PayPal Business the Employer Identification Number (EIN). But if you register as a sole proprietor, you can use your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) instead.
Finally, choose a Business URL, customer service email, and customer service phone. After that, you have to provide additional business information, such as tax credentials and business registration date. Enter other data as well, such as Sales last year and Sales venue(s), where you list your revenue sources and choose your average transaction price.
Save all the data, and with the verification of your tax-related information, your PayPal Business account is ready to use.
If you don’t trust PayPal, you may prefer to use Wise to transfer money. You can also accept payments via WordPress using Stripe, a solution that is very similar to PayPal.
Image credit: Pixabay. All screenshots by Sayak Boral.
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Sayak Boral –
Staff Writer
Sayak Boral is a technology writer with over eleven years of experience working in different industries including semiconductors, IoT, enterprise IT, telecommunications OSS/BSS, and network security. He has been writing for MakeTechEasier on a wide range of technical topics including Windows, Android, Internet, Hardware Guides, Browsers, Software Tools, and Product Reviews.
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