When starting up a business, I'm pretty sure PayPal will allow you to use a personal account as the business grows. However, at what point would PayPal insist that you change over to a business account?
I'm not aware of this and didn't got into any troubles so far, I signed up with PayPal for years and just uploaded my ID etc. and they never asked questions.
I think when your business is growing and you start becoming a more stable income which is transfered to PayPal you will need to look into becomming a verified business account with PayPal. This will also help you in the case of a dispute.
You must know doing a dispute with paypal for a buyer it is easy and in 90% of all cases PayPal always give it in the favour of the buyer.
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