[Question] Repurpose Aged PayPal or Create a New One?

[iamdublex]

Hey PayPal Experts!

I have been running an SMM Store(Not Panel) for the past 4 years and have used PayPal for CC Payments with no problems because my customer support team and services are of quality, hence my chargeback rates are <0.1%.

Here is where the problem lies:

We have recently formed a US LLC because it is an optimal way to tax our income (15% tax on owner withdrawal, unlike 22% in our country).
We want to change our PayPal to US Business information, but are unsure if that's going to make a problem since our services are against PayPal TOS.

Should we risk our Aged PayPal account for this, our make a fresh US one?

The problem is that we want to withdraw our money to our US bank account.

Also our aged account got a "In compliance with regulatory requirements, we need some additional information to confirm your identity as the account owner. Please confirm your identity at dashboard" when I logged into it while visiting a foreign country - We do not have the documents to confirm our account identity as it is, but would be able to if we were to change it to US info.

Cheers : )

 

[Marko Krassus]

Make a fresh one. Paypal are too annoying to deal with and it's better than risking your funds being frozen for X amount of time while you wait for the cogs of the machine to turn at Paypal.

 

[daniels27]

There is not just one PayPal, there are several entities running the domain paypal.com. Once you open your account, it generally is bound to that region. Not even their customer service is able to access accounts from other regions.

Apart from that, PayPal classifies accounts regions by the bank account you added first. Also, you can upgrade a personal account to a business account, but not the other way round.

Without knowing the exact scenario, it is hard to give you any suitable advice.
- What country is the PayPal account you have
- Do you have a personal or business account
- What country do you have bank accounts for the new entity

While I personally would not consider converting the account, as there is almost no benefit of an aged account. The only benefits may be that you have debit/credit cards from PayPal ready to use. And also, you will most likely not run into any volume issues when you have a sudden peak in sales. If you have a lot of turnover on new accounts, PayPal will restrict the payout and may also ask you to upload tracking numbers for shipped orders.

Please also bear in mind that having past transactions and potential refunds from the old company will only create accounting problems. You will need to distinguish between transactions from old and new business. And account that you may have refunds from the old business months after the new one took over the PayPal account. How are you going to explain this to the tax guy should he ever audit your business? Running a US business from "your country" basically makes the US country tax resident in "your country" and thus subject to "your countries" law and tax rates. If you truly move out of "your country" and set up an office in the US, you won't have that problem, but then you may be subject to exit taxation in "your country". Using the same PayPal account makes is very obvious that you moved the business and the tax guy will certainly cost you a lot, should he check your PayPal statement when checking the final tax year in "your country". Hence, not a very bright idea to reuse the account.

If you have a personal account in the US and you want to convert to a business account in the US, I see no issue from the PayPal side and would potentially do it. Potentially and for sure not, as there is no benefit and many problems coming with the switch.