Upgrading from Premier to Business (US Bank Account Withdrawal Issue?)

[jeremylwf]

Hi,

Currently, my paypal account is a premier account with a US based checking account (Citibank) which I use to withdraw money from Paypal.

I'm planning to upgrade my premier account to business account so customer will get to see my company name instead of my personal name which will look more professional. My concern is will it cause any problems with my US checking account since it is registered with my bank under my personal name instead of company name?

I believe Citibank will only accept deposit if the name matches. Is there a way to tell Paypal that the bank account name is still registered under my personal name?

[snowshoe]

As your personal name is registered with the PayPal account, don't think it will matter.

[jeremylwf]

A friend of mine has a Paypal business account and he had trouble linking with his personal checking account (also Citibank). The 2 security deposit made by Paypal was declined by the bank, presumably due to the names not matching.

Hence, I am worried that I might face the same problem as he did once I upgrade the account.

[snowshoe]

Then you may have the same issue.

If you're Sole Proprietor, you may want to consider changing to an LLC.  We did that, closed the old PayPal Account, opened a new Business Account with a business checking and business credit card.  The change went very smooth and now we're not mixing business with personal.