Thread: Paypal Business Accounts

I did a quick search but didn't find any similar threads and the paypal website is confusing as usual so I wanted to ask- how many of you use paypal business accounts? Have they made running your dance business easier? Have you run into any problems with it? I am used to using my personal paypal account but I would like to make a separate one for dance business needs. I want to be able to send invoices to clients and have paypal buttons for class registration on my website but the paypal website is unclear- are these separate types of business accounts or is it just one general type of business account that does both things? Thanks in advance!

It's just one type of account.

I love love LOVE my paypal account. I use it for registrations on my website (Lotus Arts Studio - Yoga, Bellydance and more in Belleville, IL) and also for special classes.

I also use it to invoice deposits for performances, it's the *only* way I've ever successfully collected a deposit from a customer.

I love that my customers can register for classes on the spot when they find my website, using a payment system that most of the world trusts. It's cheaper for me than any other credit card processing system, and funds are available to me instantly. (because of previous credit issues, CC processing companies always want to charge me out the wazoo and take up to 5 days to release funds to me, Paypal treats everyone the same). I also love that I don't have to be personally responsible for my customers' credit card information!

Make sure you get a Paypal debit card. not the credit card, a debit card. It makes accessing the funds that collect in your account SO much easier. I use mine to pay most of my business bills and earn cashback whenever I use it! That plus the interest my balance earns (you have to sign up for interest-earning on your account, duh, who doesn't want that?!?) reimburses me for a lot of my paypal fees.

I can also use my debit card in an ATM to get cash instantly, up to $400 per day, which has come in REALLY handy on occasion. i do have to pay fees, though, haven't found an ATM that doesn't charge me, usually $3 per withdrawal. Grrr.

Good info, Lauren, do you still have a separate personal account?

The day that paypal becomes a real bank with ATMs I can actually deposit checks in I am jumping ship and leaving wells fargo in the dust. LOVE my paypal. It's easy, fast, I get a real person every time and they never mess around with my finances the way big banks always do.

Wow, thank you so much Lauren, that was extremely helpful! Balances earning interest sounds like a great feature!

Now I just have to figure out if my DBA makes my business type an 'individual' or 'sole proprietor'.

I don't have a separate personal account. I'm a sole proprietor, so it's not really necessary. I just have to sort it out in my books whenever I use the account for a personal expense and show it as an 'owner withdrawal.'

Hi Lauren,
Do you also use a business bank account?

I thought I needed to set one up but if it all can be done (except for perhaps depositing gig checks) on Paypal then perhaps I dont need a biz bank account right away.

Thanks :)
~Isis

I do have a business checking account. Not all of my students pay by paypal, roughly half still pay by check or cash. And 90% of my performance customers pay by check or cash.

And I can't pay all of my bills by debit card, either, I really need a checkbook for a few things.

p.s. I agree with Eshta, the day paypal lets me deposit checks and write one (or pay bills online the way my bank does) they're my only bank. They need a bigger ATM network, though.

We have been allowing students to pay tuition using paypal for three years now. No problem.

I was just wondering about this last week. Thanks for posting the question and all the great answers.

For those hosting events, Tribal Fest had a major problem with Paypal this year because of a policy change. Paypal won't release the money until after the event is over. While on the surface I can understand this, I also know that most organizers use the incoming money prior to the event for advertising, deposits, and other pre-event expenses.

You can avoid a $3.00 PayPal fee by withdrawing the money at a grocery store. I've done that, and all I do is go in and buy something for $1.00, and get cash back.