How To Set Up A PayPal Account For Your Business

Tim Brookes 26-04-2012

how to set up a paypal accountIf you run a small business How to Set Up a Small Business Computer Network Read More or are thinking of taking the plunge into self-employment 10 Best Websites That Show You How to Start a Business The road to business success is littered with failures. On the other hand, it is also paved with success because people like you and me dared to venture and do it inspite of the obstacles.... Read More then there’s a good chance you will need a quick and easy method of invoicing and charging your customers or clients.


This is especially true if your customers live abroad, but it also nice to offer a fast, secure and accessible payment method that suits prospective buyers as much as it does you. PayPal is the current king of online transactions; it’s quick, it’s easy and it’s even available on your smartphone Use PayPal Mobile To Pay On The Go With Your Paypal Account Since we wrote about 9 tools PayPal users should know about way back in 2008, the online money service now has an app for iPhone, Android, and BlackBerry users. PayPal's mobile app may well be... Read More .

In this article we’re going to run through how to set up a PayPal account How To Keep Your Paypal Account Safe From Hackers Read More for your business.

Which Account Do I Need?

There are a few different types of PayPal account – personal, premier and business – and then there are a couple of different types of business accounts within that category too. Choosing the right one is important, and entirely depends on the needs of your company.

The most basic account which allows the processing of credit card transactions is the premier account. This is one step up from a personal account, and if you sell a lot of things on eBay or use PayPal for other online services there’s a good chance you already have a premier account. The main thing that separates the premier account and a full-blown business account is that you cannot set up a premier account in your business name. You can however still use extra features like mass payments for paying hundreds of people in one go with minimal fees.

how to set up a paypal account


Business accounts require a business bank account and an approval period of a few days before you’re up and running. Premier users will still have to verify their bank details as any normal PayPal user would, and can only link their account to a personal funding source.

If you’re in the process of starting a business and don’t yet have a company bank account you can select a premier account and then upgrade your account later once you have the necessary requirements.

Registering A Business Account

To register an account click here to open PayPal (global link) and select your country and desired language. Once you have selected a country the page may refresh to reflect policies local to your region, for example in Australia it is not possible for businesses operating in a trustee capacity to open a PayPal account – your own country may have their own requirements, so make sure you read the small print!

how do i set up a paypal account


Once you are satisfied that your business meets PayPal’s requirements click Get Started underneath the business account option. Depending on your region this next step may vary, and you may be asked to choose a business account that suits you. There are three types – standard, advanced and pro. A standard account costs nothing (except for fees on payments you receive, of course) and requires that customers carry out their transactions off-site (i.e. they must leave your company’s website and finalise payment within PayPal). Advanced accounts cost $5 a month (in the US) and allow you to integrate payment forms into your company’s website. Customers will not have to leave your site to pay, instead a PayPal checkout form is embedded within your e-commerce software. You will either need to have a developer integrate the form or be using one of the supported ecommerce platforms.

how do i set up a paypal account

Finally there’s the pro business account which, at $30 per month, is clearly aimed at bigger businesses who need some powerful extra features. For that monthly fee you’ll be able to take total control over your checkout pages, allowing for completely customised on-site payment systems. A virtual terminal is also provided for processing payments over the phone, via fax and snail mail. Don’t forget you can always upgrade once your account is up and running, so if you’re not sure whether you need these extra features yet then select a standard account for now.

how to set up a paypal account


Due to disparity between the many different international versions of PayPal, the next step differs depending on your region. If you live in the US you will first be asked menial account information followed by a page of business requirements. On the Australian PayPal registration I was asked immediately for all business details before even registering an account. Regardless of where you are in the world, you’re going to need your business information handy at this point. Bank account details, an address, customer service email as well as personal details for the account operator (that’s you) are all requested. Fill in the form as thoroughly as possible, as PayPal must verify your account and any incorrect information will further delay the process.

how do i set up a paypal account

If you are given the option, choose “Website Payments Standard” for the free standard account, from the “select Payment solution” menu, though this may or may not appear as an option depending on your region.

Finishing Up & Extras

Once you’ve filled out all your business information you will only have to wait a few days before PayPal verifies your account and you can start using it. Don’t forget upgrades are possible from your account after logging in, so if you discover you need extra functionality at a later date you can always upgrade.


There are also two other products that might interest business owners who use PayPal – the PayPal MasterCard debit card and PayPal Here which allows users to accept mobile credit card payments using an iPhone and a card reader. PayPal’s debit card is at present only available in the US (though fingers crossed it will roll out elsewhere soon) and can be requested within your My Account area if available.

For information about PayPal here you should check out the PayPal Here mini-site for more information on availability in your region.


Once your business PayPal account is up and running you’re ready to start accepting payments from a variety of sources, including the major credit card providers Visa and MasterCard. If you’d like to know more about receiving payments and the fees you will incur on your incoming funds then you can check out PayPal’s official fees chart [Broken URL Removed].

Do you use PayPal? Have you got a business account? Is it the best payment solution, or does it drive you mad? Let us know in the comments!

Related topics: Business Technology, Money Management, PayPal.

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  1. Chad Silverston
    May 22, 2016 at 2:33 am

    Has anyone bought a PayPal account from Auction Essistance?

  2. Conrad
    April 15, 2016 at 3:07 am

    Since PayPal requires a bank to have verified status. If I don't want to add my bank, do you think getting a virtual bank from Auction Essistance can help protect my info?

  3. Janice Hernandez
    March 29, 2016 at 2:40 am

    Warning: I tried to set up an account for our neighborhood club, which is a corporation, but I was told they still require the name and social security number of an individual who will be "legally and financially responsible" for the account. This doesn't make sense to me, and I told them so, but they were insisting it was a federal requirement because of terrorism. Hmmmm?

    • Jason
      July 21, 2016 at 3:31 am

      that completely makes sense. You obviously don't know anything about business and how it works. i'm surprised they didn't ask you for your EIN, which you are supposed to already submitted (unless you are a sole-proprietorship)
      and second, why would you open a Corporation for your "neighbor club"? you will be Taxed twice by the IRS. You either are lying about your company or are very dumb.

      • Ed
        October 12, 2017 at 10:54 pm

        @Jason -- you are obviously very dumb about neighborhood associations

        • John Smith
          November 8, 2018 at 12:03 pm

          It is indeed a strange requirement from Paypal, and stopped me from opening a Paypal business account for my US company as I am not from US and do not have a US social security number. Jason's comment above is unfortunately short on facts as well. I went through the full form completion (including EIN) before close to the end finding out I could not open an account, then calling Paypal to clarify.
          I'm from UK and could have given them the same information that I used for the IRS to open my US business (I doubt if the IRS have less strict regulations than Paypal!) but no, not enough for Paypal.
          So Stripe it is! In a world with choices fortunately I can find a good alternative.

  4. Chuck Hamman
    March 2, 2016 at 12:39 am

    WARNING - I used PP for my small business and nearly got screwed.

    My first customer tried to pay for the invoice using his Master Card. It was declined, so he had to use his personal card (eeek, that's embarrassing).

    Then the payment was held in the resolution center. I provided all the paperwork necessary to prove the buyer approved the charge. PP said it would take 30 DAYS to resolve.

    In the meantime, I needed the funds to complete the project. Everything was on hold.

    Then I contacted customer service to resolve it. I sat on hold forever. It's still not resolved.

    I can't operate a business like this. Don't trust PP. It's riddled with problems and glitches.

    - Chuck Hamman
    Founder, Little Book That Sells

    • tara
      April 18, 2016 at 1:12 am

      I am assuming you have switched services - who do you use know?
      I am attempting to set up a business and appreciate your input.

  5. Ryan Smith
    January 10, 2015 at 1:42 am

    Thanks Bro its simply an awesome article in simple words. Thank you very much. I actually was looking for business account requirements for a while now. Cheers!! keep up the good work.

    Ryan Smith from
    you may probably know me.


  6. Jason Eyermann
    October 22, 2012 at 3:15 pm

    I currently have a premiere account that i've been using for years. I've recently set up a business bank account for my new business. Would I need a different pay pal account to my personal one, as i want to pay for different things on my business bank or personal bank account depending on what i buy, or does paypal have a solution for that?

  7. Jess
    June 18, 2012 at 8:05 am

    It is necessary to have a business bank account to add in the business pay pal account? or can be added the same normal savings account of a personal paypal account?

    • Tim Brookes
      June 18, 2012 at 11:11 am

      As far as I'm aware you need a business bank account to set up a PayPal business account. If you don't have a business bank account then create a Premier account and upgrade the account once you have one.

      • Ken
        September 13, 2012 at 10:40 am

        Actually this doesn't appear to be true. Your paypal account will remain "unverified" until you do add a bank account, but practically you can still send out invoices to others who can then pay you. The only way you'll be able to withdraw money is in checks of up to $500 (with $1.50 fee per check), or I think bank wire was also possible. The reason this is great is because many people have been burned by Paypal before. They can decide whether or not your goods or services are in violation of their morals (no joke, many legal herbal products are banned by them), freeze your account when they find out, and even go back into your bank account to refund everyone you did business with. Going the check-only route is really the only safe way to do business with Paypal, unfortunately. Paypal does not believe in a free society, instead imposing their morality (or perhaps it is about monopoly protection for specific industries) on its customers.

  8. Achraf52
    May 2, 2012 at 11:13 pm

    This Paypal service seems too bad, first they don't allow countries such as Morocco to receive money on their account, then they don't have any direct contact form that get a reply soon, they also froze accounts of many users without any reason and don't reply to any messages, so I wonder if this is a safe place to hold hundreds of thousands of dollars a business may need or earn, after all I stick with Alertpay which provide quality service .

    • Ken
      September 13, 2012 at 10:42 am

      I agree, they are not a good business with which to partner. They can go into your bank account for any reason. Their terms of service are horrible.

  9. tamer sakhsoukh
    April 27, 2012 at 11:43 pm

    I really would love to set up a Paypal account but unfortunately, it is not offered here in Egypt.Could you provide me some tips to establish a Paypal account as i am running an online bussiness ?

    • Achraf52
      May 2, 2012 at 11:15 pm

      This is really a mess by them to our countries, which are not allowed to receive their payments .

  10. AriesWarlock
    April 26, 2012 at 2:15 pm

    Isn't Amazon Payments better?

    • Tim Brookes
      April 27, 2012 at 4:39 am

      Well that's a matter of opinion! There's also Google Checkout - that is unless Google retired it.

      • Achraf52
        May 2, 2012 at 11:14 pm

        No Google will not retire it as it is a part of their app markets and payment system, so I guess they have no other option than keeping it good for everyone .

  11. Amaad Mirza
    April 26, 2012 at 12:32 pm

    in this word you before put WWW and after this word you can put .COM
    so please check this site. thanks :)

  12. Amaad Mirza
    April 26, 2012 at 12:28 pm

    hey friends check this link its very very beneficial for you so please check it and enjoy it.

    (NEOBUX) in this word you can put the WWW before and after .com ok

  13. Kyem Ghosh
    April 26, 2012 at 3:35 am

    I signed up to paypal 2 n half years ago to shop at ebay. Last year I repeatedly got notification mails from paypal about proving the PAN (Personal Account Number) to continue transactions using paypal. And there is no alternative against it Even most of the Indian banks ask for PAN number for creating a bank account for Indian citizens. You'll get to know more here

  14. Kyem Ghosh
    April 26, 2012 at 2:18 am

    Indian citizens need to provide their PAN card number to their account details as it is made mandatory by the Reserve Bank of India (RBI) or else transactions cannot be made.

    • Tim Brookes
      April 26, 2012 at 2:52 am

      Thanks for the info! It seems there's a lot of different policies to adhere to depending on where you are, thanks to various international laws.