You’ve finally realized you really do need separate bank accounts for your business and personal money. It makes life easier, and it makes your bookkeeping so much simpler too. But now you’re stuck on one thing: how do you set up a business PayPal account?
Maybe you’ve only ever had a personal PayPal account, and every time your business needed a PayPal link, you just used the personal one. Then along comes a tool that requires a business PayPal account before it’ll release your money. Sound familiar?
Honestly, as a business owner, you should have a business PayPal account anyway — and yes, you should keep your personal and business accounts separate (I knew you were going to ask). Here’s exactly how to set up a business PayPal account, whether you’re starting fresh or converting an existing personal account.
Note: PayPal updates its interface over time, so the exact screens and button labels may differ slightly from the steps below — but the overall process is the same.
How to set up a brand-new business PayPal account
Step 1: Go to PayPal.com and choose “Sign Up”
In the upper-right corner you’ll see options to log in or sign up. Choose sign up, then select Business Account and continue.
Step 2: Enter your email address
Enter the email address you want to use for this business account. If that email is already attached to another PayPal account, you’ll be bounced back to the login screen — so use an email that isn’t already in use, then continue.
Step 3: Create a strong password
This is essentially online banking, so use a secure password — not your pet’s name and a number. Mix uppercase and lowercase letters, numbers, and symbols. Make it hard for anyone else to guess but easy for you to remember, then continue.
Step 4: Enter your contact details
Enter your main contact name, business name, phone number, and address, check the box, and continue.
Note: Your legal business name can be your own name, especially if you’re a sole proprietor, and you can change it later — but you do need something in the field to move forward.
Step 5: Enter your business details
First, choose your business type: individual/sole proprietor, partnership, corporation, nonprofit, or government entity. Most readers here will be an individual/sole proprietor or a corporation.
Note: If your business is an LLC, select Corporation. The main difference between the two options is that a corporation provides an EIN.
When you reach the box for monthly sales, it’s smart to overestimate. It’s also worth telling PayPal customer service ahead of any launch when you expect a larger-than-normal amount of money to come in. When PayPal has a note that a spike is expected, your account is less likely to get flagged for suspicious activity. Accounts can get flagged for many reasons, and completing your profile fully lowers the odds — though it’s never a guarantee.
Step 6: Fill out your personal information
Your address should auto-populate from the earlier step; if your personal address differs, just correct it.
That’s it — you have a business PayPal account. Link your bank account and you’re officially in business.
How to convert a personal PayPal account to a business account
If you already have a personal PayPal account, you can convert it to a business account. (Remember: you’ll still want to keep a separate personal account too.)
Step 1: Start the upgrade
Click the settings/gear icon near the top of your toolbar (next to the logout link and the notification bell). In the lower-left area, choose Upgrade to a Business Account.
Step 2: Select your email address
Choose which email address you want to use for the business account and continue.
Step 3: Enter your contact information
Fill out your business contact information, check the box, and agree.
Note: As above, your legal business name can be your own name and can be changed later, but the field can’t be blank.
Step 4: Enter your business details
Select your business type (individual/sole proprietor, partnership, corporation, nonprofit, or government entity). Remember, an LLC selects Corporation, and a corporation provides an EIN. As with a new account, overestimate your monthly sales and give PayPal a heads-up before big launches so your account is less likely to be flagged.
Step 5: Fill out your personal information
Your address should auto-populate from the earlier step; correct it if your personal details differ.
Done — your personal account is now a business account. Link your bank account and you’re officially in business.
Why it’s worth the setup
Don’t let the process stress you out. PayPal makes running your business easier, so it’s worth setting up properly. I personally know plenty of people who won’t buy something unless PayPal is an option — it lets them check out without digging out a card every time. Make it easy for your customers to buy by offering PayPal, and make it easy on yourself by using a proper business account.
This article is for general educational purposes only and is not legal, accounting, or tax advice. PayPal’s features and interface change over time — confirm current steps on PayPal’s site. Always consult a qualified professional about your specific situation.