I just had the same problem and resolved it, am posting this in case it helps someone else who happens to be in a similar situation.
I had a previous account while resident in another country (New Zealand), but have recently moved to the US. It isn't possible to change personal or business address except within a country, so I knew I needed to create a completely new account.
The problem was, PayPal must have been using cookies on my browser and still thought I was in New Zealand. When I went to Paypal.com and scrolled way down, on the bottom right was a little New Zealand flag. I clicked that, changed the country to the US, and then started afresh with creating a new account (for the US).
That led me through to a completely different menu, specific to the US, and registering the business account was successful at last.
Hope this helps.
