Do you like to convert your PayPal personal account to a business account? Converting to a business account will enable you to receive funds using several options like checkout, subscriptions, donations, etc.
PayPal offers two types of accounts: individual accounts and business accounts. One can only send funds with individual accounts, while business accounts enable pretty much everything, including receiving funds and donations.
In this post, I will share all the steps for converting a PayPal account to a business account. The steps will include suggestions for choosing the right product or service keyword and the purpose code.
PayPal Convert to Business Account
To convert an individual account to a business account, we have to follow the following steps:-
Step 1: Log in to PayPal Account
Log in to your PayPal account. Click on the settings icon available on the dashboard.
Now, you will see your profile. Under the account tab, you will get an option to convert your account into a business one.
Step 2: Business Type
Once we click on the ‘convert to a business account’ link, the process for conversion begins. There, we have to choose the business type first.
The options include
- Individual,
- Sole Trader,
- Partnership,
- Corporation,
- Other Corporate Body,
- Government entity.
Those who are operating websites and want to receive donations have to choose an individual option.
Step 3: Describe your Business
In the next step, we have to describe our business and provide relevant details. In this, two fields, Product or service keywords and purpose code, are significant, and we will discuss them in detail.
PayPal Product or Service Keywords
Though the field is not a drop-down field, it is not a free text field either. Once we type a letter, a drop-down list will appear, matching the typed letter.
To avoid missing the right keyword, please see the list of all such keywords below and choose the appropriate one fitting your business activity.
PayPal Purpose Code
Purpose code is another required field for regulatory and taxation purposes. It is to keep in mind that tax is applicable on a received fund in many countries. So, PayPal will deduct the tax from a received fund, and the balance will go into your account.
The rate for such taxation may depend on the purpose code chosen. Hence, carefully select one for your account. Please see the list of all purpose codes available on PayPal below.
- Read: PayPal Purpose Code List
The rest of the fields are simple details. Once we click on submit, we move to the final step.
Step 4: Tell about your Business
Here, PayPal seeks more information regarding the business owner, address, contact number, and primary currency.
Most of the details here are pre-filled from already available data with PayPal. You can make necessary modifications here if any change is required in the address.
Once you click the ‘Agree and Continue‘ button, your account will finally be converted to a business account.
PayPal Business Account
Once your account is converted to a business account, you will observe changes in UI, particularly the dashboard. It will now be more oriented towards creating an invoice, requesting money, and integrating with checkout solutions.
Summary
In this article, we have seen all steps leading to conversion of an individual account to a business account. The steps were accompanied with snaps to aid in choosing the right options.
If you have queries or doubts about converting to a PayPal business account, feel free to comment below. Cheers!