on 08-05-2012 10:58 AM
Paypal now asks for a SSN or tax ID number.
This is for the 1099 info that will be provided to IRS should you use Paypal service for more than 200 AND $20,000 in transactions.
you can read up on the requirement in Paypal.
If you don't have a business tax ID # then you would use the SSN.
on 08-05-2012 06:25 PM
You can get an Employee Identification Number (EIN) from the Internal Revenue Service for free and use that instead of your SS#.
Single proprietors with no employees don't need an EIN but you can get one.
I have one because I don't wish to use my SS for wholesale buying purposes, the EIN proves I'm a business. My state has no sales tax so no state resale tax id.
What you can't do is get around PayPal's requirement to further prove your identity and also to verify whether or not you are running a business.