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Business vs Personal Account--What are advantages of each?

I currently have and have had an eBay business account for a long time.  It's a very small business, but I do collect sales tax, pay my income taxes, etc.  If I change to an eBay personal account to avoid the Hub, what features will I lose  (eg shipping discounts, top rated seller and powerseller status, automatically collecting sales tax, etc.)?  On the Preferences/Account page, it only talks about business names.

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Business vs Personal Account--What are advantages of each?

Hi. There are three types of accounts on PayPal-- Personal, Premier, and Business. You must have a Premier or Business account to accept international payments on ebay, so if you do a lot of international transactions, changing to Personal would limit your sales. 

 

Here are some links with more info, including the benefits of each type. Hope this helps!

 

https://www.paypal.com/al/cgi-bin/webscr?cmd=p/gen/personal_vs_business-outside

 

https://www.paypal.com/us/selfhelp/article/what-is-the-difference-between-personal,-premier,-and-bus...

Message 2 of 14
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Business vs Personal Account--What are advantages of each?

I don't know much about the difference between the two types of accounts on eBay but there is a little information here.  http://pages.ebay.com/help/account/how-to-register-business.html

Message 3 of 14
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Business vs Personal Account--What are advantages of each?

That's a good question. I used to think it was to allow multiple people to use your account. I registered an account last week and I guess I should have made it business. I'll have to change that before I list anything.

 

BTW I don't think the Premier Paypal account has been available for a couple of years. I think it's now just personal, business and micropayments.

 

Message 4 of 14
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Business vs Personal Account--What are advantages of each?

The link that @pjcdn2005 provided gives some insight but it really is not so much what it says as much as what it does not say directly.

 

Deciding to register as a business

Choose a business account if you:

  • Sell items that you've bought to resell.

  • Sell items you've produced yourself.

  • Sell a large amount of items on a regular basis.

  • Sell new items that you bought but don't use personally.

  • Buy items for your business.

If you aren't sure whether to register as a business or as an individual, contact your legal advisor.

 

These suggestions are pretty obvious but you need to think about this is a broader sense.  Okay I am going to say it, but I do not like it, internet sales will more than like endure a process where buyers will be paying some kind of tax on all transaction (VAT, sales tax, etc) and sellers will be responsible for submitting these tax requirements on behalf of the buyers. It really it would be good of the marketplaces will handle the collecting and submission on behalf of its buyers and sellers, but that is yet to be seen if that will happen.

 

  • The 1st suggestion above is basically saying if you want to do this you might be required to have a registered business account at some time in the future.
  • 2nd suggestions is basically saying in order to sell hand made items in the future you might be required to registered your business to vett any issues that might come up in selling items you produced yourself (trademark issues, knockoffs from Asian wholesale manufactures, etc)
  • 3rd suggestion sounds like smaller selling limits might be in place for sellers who are not registered business accounts
  • 4th suggestion pretty much covers businesses who buy product for the sole purpose of reselling them as a registered business.
  • 5th suggestion addresses your registered business from a buyers perspective which might indicate some changes to your buying previleges.

ebay does nearly everything ahead of time so that down the road when they are ready to connect this policy or that policy to a grander design and the smaller pieces are already in place and they can move forward with a final assemble to create better experiences.

Good Luck Selling!

 

Message 5 of 14
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Business vs Personal Account--What are advantages of each?

Thanks to all so far, but. . .I am really looking for practical benefits of the business account.  Not "when" you should have one.  What capabilities / features will I lose if I don't have a business account?  eBay tells that if you have a business account your business name will be on all the corespondence with your buyers.  But surely, there are more.  Has anyone switched from business to personal and saw some changes?

Message 6 of 14
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Business vs Personal Account--What are advantages of each?

Why would you want to switch from business to personal? You still have to pay taxes regardless. Why are you even considering it?

 

Message 7 of 14
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Business vs Personal Account--What are advantages of each?

In their op they mention that they want to avoid using the sellers hub.   I hadn't heard that only business sellers would be automatically switched. Is that true?  If so, that must mean that all of the sellers complaining here about being switched to the hub are busines sellers?

Message 8 of 14
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Business vs Personal Account--What are advantages of each?


@chisolmtrail1001wrote:

Hi. There are three types of accounts on PayPal-- Personal, Premier, and Business. You must have a Premier or Business account to accept international payments on ebay, so if you do a lot of international transactions, changing to Personal would limit your sales. 

 

Here are some links with more info, including the benefits of each type. Hope this helps!

 

https://www.paypal.com/al/cgi-bin/webscr?cmd=p/gen/personal_vs_business-outside

 

https://www.paypal.com/us/selfhelp/article/what-is-the-difference-between-personal,-premier,-and-bus...



Question is regarding  Ebay account types not Paypal account types.

 

The information you have provided is only relevant for Paypal.

Message 9 of 14
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Business vs Personal Account--What are advantages of each?

On eBay USA there is very little difference between the two types of accounts.  Basically the ability to have a company name on the return address.  On other eBay sites there are major differences between the two due to the laws that govern sales in other countries especially in the European Union and the UK.

 

The seller hub will be implemented to all sellers at some point in time no matter what type of account you have.  It is not that bad but it does take a little time to get used to.

Message 10 of 14
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Business vs Personal Account--What are advantages of each?

Yes how do I switch from a personal account to a business account?

Message 11 of 14
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Business vs Personal Account--What are advantages of each?


@jasoburk3wrote:

Yes how do I switch from a personal account to a business account?


For eBay.....

 

Accounts -> Personal Information -> First Line is Account Type -> click on edit

 

For PayPal......

 

Settings -> Account -> Account Options -> Upgrade Account

Message 12 of 14
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Business vs Personal Account--What are advantages of each?

because you're running a business , and it have more benefits.

Message 13 of 14
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Business vs Personal Account--What are advantages of each?

Hi everyone,

Due to the length of time that has passed since this thread began, we have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread here: https://community.ebay.com/t5/forums/postpage/board-id/selling-db

Thanks.

Message 14 of 14
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