PayPal exists in most countries, but in many of them it only half works: you can receive but not send, send but not receive, or withdraw only at a poor rate. A US PayPal Business account for a US LLC is the full version of a product your customers already use. It's also the least predictable payment account to open and keep, so this guide covers both.
What the US business account asks for
- The company's legal name and EIN, as on the IRS letter.
- A US business address and a US phone number. The registered agent's address is the company's legal address, but PayPal also wants an address where mail reaches the business and a number it can call, so founders usually arrange a US mailing address and a US number.
- Identification for the owner: name, date of birth, home address abroad and a passport. PayPal can ask for an SSN or ITIN; many owners are verified without one, and some are asked for more.
- A US bank account in the company's name to withdraw to. Open it first.
Why new accounts get limited
PayPal limits accounts, holds balances and asks for documents more readily than Stripe, especially in the first few weeks and especially for dropshipping, digital goods and anything with a lot of disputes. A limitation isn't a closure. It's a request for information, and answering fully and quickly usually ends it. PayPal typically asks for the documents above, plus proof of what you sell and where it ships from.
Keeping it open
- Sell what you told PayPal you sell, from the website you gave it, with tracking on every shipment.
- Keep disputes low. Reply to buyers before they open a case, and refund quickly when you know you'll lose.
- Don't move money for other people through the account, or run several businesses through one account.
- Withdraw regularly to the company's US bank account and keep the balance modest, since large idle balances draw attention.
- Answer every request, and don't open a second account while the first is limited. A second account is how a limitation becomes a closure.
Run it alongside Stripe
If you rely on one payment account, a limitation can stop your sales for a week. Most founders run PayPal alongside Stripe, and some add a merchant of record for digital products. Every plan includes help setting up Stripe for the company we form.