Business Account with incorrect contact name

[GMWC_VP]

Five years ago, I set up a Business Paypal account for a non-profit organization.  At the time, I was a board member, so I used my name and SS# to set it up. I am no longer on the board and not the owner of the paypal account. I never was the owner of the paypal account. It was set up with the intention that the organization owned the account.  Since I am no longer on the board and do not have signing privileges for the organization's linked checking account, it is a security risk for the organization that my name and social security number associated with the account.  This organization changes boards every year, so there is no one who is a permanent person.  I do not want the liability of having access to their bank accounts, but because Paypal is not allowing me to change the contact name on the account, I am put in a liability situation that could have legal ramifications. 

There needs to be a way for businesses to remove people from their business paypal account. It's a fact that employees leave, board members change, and not giving businesses an easy way to remove people's names and social security numbers from business accounts is creating a liability for businesses. Imagine if a disgruntled employee had set up the account, and cleaned out a business's linked bank accounts because they had access through paypal.  According to Paypal, they're allowed to do so, because the employee owns the account rather than the business.  

All the options I find allow me to change my name if it has legally changed, but there does not seem to be a way to disassociate myself from a business when I set up the business account for the business. As I said, the organization owns the account, not me, so how do I remove my name and put in the current treasurer's name instead?

[DPCreations]

It really doesn't matter what business name is on the account or the board members of the business.  It was YOUR SS# and name on the account, so, as far as PayPal was concerned it was YOUR account and you should have taken the responsibility to secure it rather than give away of your personal information to another party.  You should have transferred funds to the association for a new person to set up the business account.

Since you no longer have access to the PayPal account, PayPal has no legal authority to do anything.

My suggestion is to contact a lawyer to get YOUR account back from the association.

[GMWC_VP]

What a rude answer.

You obviously did not understand what I was saying.  I DO still have access to the account, and when it was set up, I TRIED to set it up without my social security number and tried to only use the organizations EIN number.  However, Paypal would not allow me to set it up that way until a social security number was included.  

This is an organization that has a new board every year.  Perhaps the ways to set up a corporation on paypal has changed since 2013, but when I set it up, it required a social security number and since I was president at the time, I included my social security number--not realizing Paypal makes it nearly impossible to change it after the fact.

Thanks for giving such a rude answer.  It is greatly appreciate.  NOT! 

[DPCreations]

Well, if you do have access, then make sure no one else has access until you can fix it by taking out the money and gving it to a person who will open a new account.  Why wasnt' the organizations tax number used for the account?

You won't be able to change the tax ID on the account. That would be inconsistent with IRS reporting requirements.  It will require a new account with a new number.

You could phone PayPal support to find out if the ID # can be changed.  That, however, would be a new account.  Any required IRS tax documents will be assciated with the SS# on the account.

[GMWC_VP]

The organizations EIN was used.  But when I set it up paypal also wanted a social security number. Paypal wouldn't let me open the business account with a social security number AND an EIN.

The account is not linked to any of my personal accounts.  It is only linked to the organization's checking account and credit card.  

I don't personally want the liability of having access to the organization's bank accounts, and this paypal account is putting me in a situation where I do have access to it.  However, I don't want to hand over the paypal account to the new person, until my name and social security number are removed.

I keep calling paypal asking them how to make the change, and they keep sending me the wrong information. I read somewhere that if you have an EIN, that a social security number shouldn't be required, but that wasn't the case five years ago.

[GMWC_VP]

I left out a word... Paypal wouldn't let me set up the account with only the EIN. It required I also include a social security number.  So the account has both the business's EIN and my social security number. 

[DPCreations · Accepted solution]

Thanks for the additional explanation.

You're right for maintaining control of the account while your SS# is on it.

I have a business account which uses my SS# as it is for a sole proprietorshp.

I assumed that an EIN would be adequate without SS# but I don't know the details about which is actually required so I can't give more details.

Suggest you keep phoning and hopefully get to a person who can specifically state if an account can be opened with just an EIN.  If so, then you would need to figure out how to remove your SS#.  I think that will depend one which number is used for IRS reporting.  If your SS# was used, then my guess would be that a new EIN account would be required.  If the EIN is used then, hopefully, PayPal could remove your SS#.

You could open a new front on PayPal support by clicking on Legal at the bottom of the page and then continuing to the email option.  What will happpen then is you get an automated email in a couple days.  At that point, get a little angry and reply tot he email that you want a real person to review and, of course, re-state the entire problem.  I've found that I actually get a conversation stated with a person.

I hope I've given you at least some background information to help you get the problem resolved.

I've reviewed a lot of forum messasges and haven't come across any that would actaully answer your questions.

[GMWC_VP]

Thanks.  I've found the same thing.  There isn't anything on the forum that really addresses this situation, and there isn't any information addressing this situation in the help area either.  

I finally did talk to someone who completely listened to me, and didn't jump to assumptions about what I needed.  He explained that the easiest way to remove my name is to just close the account and let the organization set up a new account.  Just like you said.

Thankyou!

[DPCreations]

Thanks for the update.  I was only using some business knowledge.

I was curious so I did a forum search for "EIN reports" which resulted in a lot of postings, even some of mine, but no definitive answer from anyone really knowedgable.  It did appear, however, that it would not be possible to change SS# to EIN.

Some suggeested a way for just EIN but no one really confirmed that.

If you do close the account just make sure to remove any linked bank and/or credit cards.  If you don't unlink them they the could be used with any new account.

Also,since the organization would be setting up a new PayPal I don't think there is a rush to close your account.  If there are funds they could be sent to the new account but the new account would be subject to new account hold.

[GMWC_VP]

See that's the thing.  It is NOT my account, and never was.  It is the organization's account and it is only linked to the organization's bank accounts.  Nothing of mine is linked to it.  Having it open is putting me in a position where I could be held accountable for any discrepencies in the organization's bank accounts, because I have access to them through paypal that I'm not authorized to have.  Legally, it's in my best interest, to be removed from or close this paypal account as soon as possible. 

Tomorrow I will be talking to the Vice President of the organization and let her know the options. They can remove my name and ss# if they replace it with another name and ss#, or I can close the account and they can open a new account without needed a ss#.  However, if they opt to close the account because they don't want to associate a new ss# to it, they won't be able to use the credit card swipe option available through paypal.

One way or another, I'm going to get my name and ss# off it, the sooner the better!!