Using paypal instead of a business bank account

[ericreinhardt]

Was wondering if you can use paypal instead of a business checking account. All my business is done online and I receive payments online. I also use the business debit card for business purchases.

[snowshoe]

You certainly can use PayPal in many ways however, you will still need a bank account linked and confirmed to keep your account verified, else you will run into limits and holds for both sending and receiving funds.  

What you may want to do is compare your costs as PayPal is not a technically a bank.   For example, they don't offer FDIC insurance.  They do offer a Business Debit Card but, make sure you understand the associated fees, i.e., there's always a charge to use an ATM.  And there no interest pay on keeping your funds in your account.