Hello @Sakshisehrawat7,
Thanks for reaching out! Welcome to the PayPal Community. I'll answer your questions in the order you asked them:
1. " If I have a PayPal business account and I run a business with my friend how can we split the payment/profits "
- You have a few different ways of accomplishing this. I would just recommend having all payments go to one bank account registered in the business' name and then split the profits from there.
2. "how would we do our taxes? "
- I would consult a local tax professional for this one. We're unable to provide specific tax advice.
3. "would one person getting the money in their account affect the taxation process?"
- When you open your PayPal business account, you would open it in one of the owner's name. After that, you add the business' information including it's Tax ID. (Here's a link to IRS' site to register for a Tax ID, but first you need to decide how you would like to register your business.) That way, the business TIN / EIN is taxed, not your individual SSN. That's why you need to make sure you register with a business bank account as well.
Hope that get's you started in the right direction, best of luck in your venture!
- Jon K
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