Business Account as a private person

Voidwards
Contributor
Contributor

This is something I've been trying to read the fine print on the TOS about but can't really find it, so grateful for any help in the right direction.

 

I'm considering uploading a personal musical project onto Bandcamp, and Bandcamp recommends a PayPal business account for convenience sake, but I'm wondering if there are any issues with having a business account when you actually don't have a registered business or organization connected to it. I don't want to end up in a situation where I'm being asked to provide company papers for verification when I don't even have a company or end up violating the TOS. 

 

Please advice! 

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kernowlass
Esteemed Advisor
Esteemed Advisor

@Voidwards 

 

https://www.paypal.com/se/webapps/mpp/ua/useragreement-full?locale.x=en_SE

 

Personal accounts

With a personal account you can send and request money from friends and family and pay online for purchases.

Holders of certain existing personal accounts may be required to upgrade their accounts (which may include providing further information to PayPal) in order to be able to use all of the current functionality available in a personal account.

To use your PayPal account primarily to sell things, you must open a business account or convert your personal account to a business account.

 

Business accounts

Business accounts are for people and organisations (whether incorporated or not) that primarily use PayPal to receive online payments for sales or donations.

Business accounts may be subject to fees that differ from the fees applicable to personal accounts. See our Fees for further details.

By opening a business account or converting a personal account to a business account, you certify to us that you are using it primarily for a business or commercial purpose.


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Voidwards
Contributor
Contributor

Thank you @kernowlass!

 

While the business account will be used for commercial purposes (i.e. selling music online through a digital platform) the proceeds would go to me as a private person and I'd have to tax it as any other income locally if I breach the thresholds for what is considered a hobby. 

 

I'm interpreting this part for people and organisations (whether incorporated or not) that it would be fine for me as a private individual without being registered at the Companies Registration Office as a legal entity but rather as a private citizen. The purpose of the account is commercial, but the owner of the account is a private person and this combination would thus not violate the TOS given the above - so assume I somehow hit a limitation somewhere down the road and have to identify myself I don't have to send company registration papers to prove that there is a company and that I own said company?

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