Wanting to make a business account for donation button, have no estimate of monthly sales.

Echo2themoon
Contributor
Contributor

So I want to make a business account so I can use the donation button for my live streaming art channel, and not have my personal email show at the top. But I have come up to the part where it wants an estimate of monthly sells. -- I am a digital artist, and this is for personal use. I haven't yet secured any clients, and currently just trying to build my brand. Is there a penalty for choosing the lowest estimate monthly sell USD 4,999, and not actually make anything towards that? since for now, I'm just using this for donation purposes, till I can obtain a domain website. I am just trying to work as a freelancer, and I am not sure if I will actually be able to get any work. I am just trying to build up a base of supporters right now. -- Thank you for taking the time to read this, and I appreciate all future responses. 

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DPCreations
Frequent Advisor
Frequent Advisor

First, you need to establish a business entity.  What will be the business structure:  corporation, sole proprietorship, or company?  Get the base established.

Next, get the business registered in your state for collecting sales tax.

After that, then get the account set up with PayPal.

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Echo2themoon
Contributor
Contributor

I chose individual/ sole proprietorship business because it's just me creating digital work as I am trying to become a freelance artist. I thought that was the purpose of choosing that option. Everything I do is digital.  when I contacted customer support, all they told me was to make a business account so I could have privacy when giving the donation link and not have my legal name show when the donation link is clicked. I selected digital art, as what I create. I didn't know I had to do anything else, like register anything prior, as the terms and conditions don't state anything else needed to make a business account. -- Is this what actually needs to be done, register a business and sales tax? because that was not the impression I was given while speaking to customer service. 

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DPCreations
Frequent Advisor
Frequent Advisor

As a sole proprietorship your business name initially IS your legal name.  If you use anything other than your legal name the name, not being your legal name IS a fictitious name, and that needs to be registered.  But, before you can do a doing business as fictitious name you need to have a registered business with your state tax collecting agency.

My guess is that if you had used your legal sole proprietorship name there would not have been problems.

 

On the other hand, PayPal expects a business account to be for a real business that is registered.  It's also necessary for income tax purposes.

My suggestion is to register your busines for collecting sales tax, the use your legal name or the Paypal business account.  Later you can register a dba name so you don't need to show your real name.

 

If you want something to show other than your legal name, you need to have a legal business name.

 

Do yo really need a business account on PayPal?  If PayPal doesn't require it, then just wait until you establish a real business.

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