Are you having trouble opening a PayPal Business account as a non-resident? For non-residents who own US-based companies, one question that often arises is the feasibility of opening a PayPal business account for Non-residents. It’s a crucial query, given PayPal’s prominence in facilitating seamless online transactions globally.
In this blog post, we will delve deep into this topic, elucidating the possibilities, requirements, and potential hurdles a non-resident might encounter when considering opening a PayPal business account. So, buckle up as we embark on this in-depth exploration!
To open a Paypal business account, it is mandatory to provide either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). This requirement poses a challenge for many non-resident founder entrepreneurs who do not possess an SSN or ITIN. Consequently, opening a Paypal business account becomes significantly more difficult for this International founder.
We still have the option to open either a PayPal business account or a personal account. Let’s take a closer look at each one:
Two ways to open a PayPal business account for non-residents
Obtain your ITIN: You have the option to apply for an ITIN on your own, which typically takes 8-12 weeks to process. When applying for an ITIN, the IRS requires either a certified acceptance agent or the submission of original documents like a passport.
Keep in mind that obtaining an ITIN may involve additional costs, and there is no guarantee of approval. It is crucial to choose the right attorney or agency to assist you in obtaining the ITIN number. EasyFiling is here to help facilitate the ITIN application process.
Request friends and family members who have an SSN) or ITIN in the USA: You can also request them to create a PayPal account for your business and grant them authorization to open a PayPal business account. However, it is important to note that the business transactions and tax liabilities should be managed by your company, not by your friends and family.
Although their SSN or ITIN will be linked to your company, they should not be held responsible for any taxation or legal obligations. It is crucial to consider the potential risks and tax liabilities involved in this arrangement, so it is not necessarily the best option for everyone.
Opening a PayPal account for non-residents can be a daunting task. The methods involved are complex, risky, and time-consuming, which may discourage individuals from pursuing this option.
Rather than navigating the intricacies of PayPal, it is advisable to explore alternative payment providers like Stripe or consider setting up bank accounts tailored to non-residents. These alternatives can offer a seamless way to efficiently accept payments from clients while minimizing the challenges associated with PayPal’s requirements and procedures.
Nabin Adhikari
