Yes I use PayPal, my account is a business account but that decision was only made so I could take card payments at conventions.
I'm unsure my tax info would be relevant as I'm Australian. Generally I believe I look at 10% but I have a lot of business costs I can claim such as printing supplies and travel. So it doesn't effect me too much.

Having a business account, can you also receive transactions from your friends and relatives, without paying fees?

I believe the person sending can mark the transaction as a gift, which does not incur fees? I've never used it though.

It works for personal accounts but I'm not sure if it works for business ones :3

You really shouldn't do that; if Paypal finds out you're gaming their system to avoid fees then they'll freeze and/or shut down your account. If you decide to do that, you should at least transfer funds to a bank account they don't have any control over pretty regularly. Otherwise, you could end up losing a lot of money if they think you aren't playing by their rules.

You didn't really get my question I beleive. I don't mean cheating on payments asking people who pays for commissions to send money "as friends", I mean if my real friends and relatives can still send me money without paying fees if I have business account.

you can still transfer money without any additional taxes/costs

Very little changes about your account. The fee system is very much the same.

I'll answer two!

What payment system you are using? Paypal, payoneer, Western Union, etc?
I use paypal. I either do invoices, or give people a specific way to send me the money.
IE the note system on paypal. It can't have anything about FA or the commission in it.

For paypal users, is your account "personal" or "business"?
Because of how many transactions I make, my account is business. I even have a debit card that's directly linked to my paypal, and I can use it anywhere in person. It's so convenient. A great way to pay bills and buy the groceries. : )

I've always been curious as to why we need to be hush-hush about the details of our transactions. I know that paypal doesn't cover intangible goods like art if your in a dispute, but is there another reason? I tend to make simple notes on what each invoice is for. Don't tend to mention FA specifically, but I do use the word commission and color details.

They don't consider digital files a proper trade of "goods" from my understanding, it's been a while since I read their tos so I may be off, forgive me. They'll investigate the account, if they find ties to FA/adult content as part of those transactions, you're breaching their terms of service and your account will be shutdown and any money left within becomes inaccessible. It's absolutely the best to not say anything at all if you can help it. They tend to snoop through accounts that mention art/digital files and hat not.

Yikes. That seems harsh. Really wish they'd consider art viable goods. How much mobey have they gotten from us artists using their service? :/ Seems a bit discriminatory, almost.

Thanks for the explanation and advice, though. I'll be quieter from now on when making invoices. :)

Just stay safe! Even with legitimate things, sometimes it's best to only say what you have too! Plenty of places like trello, or even just personal google docs, will allow you to keep track of who's paid and so on without risking outing yourself. Like I said though, I'd go and read the terms of service and better look through what it says for a more thorough understanding, as I can be scatterbrained and mix up information all the time!

Will do. Thanks ^^

Paypal. I have it as personal though.

And... I don't earn enough to break the tax threshold v.v

PP Business account is useful to have if you do a lot of transactions.
Would this mean you'll be open more often for commissions?
(I'd love to get another from you!) <3

Hmm, I can't tell yet. And how much is a lot? ^^

If you do commissions full time, that is probably enough to go for a business account :)
(at least a few sales a week, I'd say)

PayPal business. Many great features!

I pay annual taxes, which are around 5~7% in Japan, so I can't really offer good relevant information about that one unless you residence here.

But generally, always pay your taxes. No matter where you live.

in Poland its 23% tax so.. yeah... I"m jealous now

5-7% is loow! :'D
Here in italy we have like 20-30% >< (there are cases in which you are not forced to pay taxes, but they are particular cases)

It's low, but if you go over certain amount of annual income, it'll go higher. ^^
Though the limit is luckily pretty high to achieve as an freelancer, so I don't worry about it too much.

On the other hand, on top of the annual tax, I need to pay separate taxes for health, city and so on.
Which is still much cheaper than countries in EU. :<
20-30% is insane! I remember when I started my business in Finland (I moved from EU to Japan), I had to pay 45% of my income each month. <_<;; It was rough.

daaaaaamn!!! that was high! 0.0
Nothing to do xD To pay low taxes you'd have to live in a fiscal paradise xD Malta and similar places ^^;

Я использую пэйпал, с помощью него мне могут перечислить средства даже те люди, у которых нет аккаунта пейпала.
Мой акк личный, т.к. юр. лица у меня нет, в этом случае ПП просит всё, включая скан паспорта и прописки.
Транзакции внутри мультивалютные, при этом в рамках одного счёта нельзя переводить доллары в рубли и обратно. Пополняется счёт в городе и только рублями. Выводится в рублях.
Пейпал снимает процент за транзацию, если тебе посылают деньги с пометкой, что это оплата за что-то.
С налогами сложно, фрилансеры считаются самозанятыми граждами, но закона для налогообложения, как такового, нет, поэтому приходится заводить отдельную карточку для вывода с Пейпала и в конце года сдавать по ней отчёт, считая заработанным всё, что на неё пришло за отчётный период.

Спасибо за подробную инфу =3 У меня в общем-то ИП, но я подумываю его расформировать и просто раз в год платить налог тоже

Могу добавить, что налог платится по 3-НДФЛ и процедуру можно оформить через сайт госуслуг.

и это 13% ?

Да, как обычно для резидентов РФ.

Понятно, тогда всё же лучше остаться с ИП - 6-7% + отчисления в фонды.

I use paypal, it started from being a personal account but I updated it with the business information when I went fulltime.

I earn just barely what I can use to live right now so my taxes are currently only ~300e a year. Also the low taxes are thanks to my wonderful accountant who knows all the small things you can include to reduce taxes, these are difficult things in Finland. I've yet to pass the earnings mark where taxes and other fees will skyrocket suddenly, can't afford to cross that line yet since it'd mean I'd not be left with enough to live by.

_{Never move to Finland if you want to have your own business x'D}

I have to agree with you. Never move to Finland for having business. :'D
I had the skyrocketing explosion happen to me last year. From 300~400 euro a year to paying that amount every. single, month! Taxes went crazy, from 8% to 45% (+VAT on top for EU-customers).
Had to nope out of there as soon as possible.

Though, I have read that they are planning on making freelancing easier in the future?
I don't keep my hopes up for it, but it's good to know government has started to realize how crazy the system is for small businesses.

They have plans for better stuff! But it's mostly for medium sized businesses, such as hiring workers will be a teeny bit less risky unless they are women. I'll just try keep under the limits, I don't mind living poorly if it means I get to draw, if things get difficult I'll live in a trashcan until I restore my human status from being a business owner and get jobless benefits...

I don't do commissions full time, but I do enough to have to pay taxes, and end up needing a business license for selling at local events.

I use paypal - It's been what all commissioners that I've worked for use. I also have a business license -- though I think I upgraded mine primarily to use the debit card. Really useful as someone else said to have instant access to my money.

I think they sped up transfers by now, but before it took almost 5 business days to get a deposit -- so with the card, I could just withdraw it and deposit in my proper bank account.

As far as taxes, I'm in the US and in a town that requires further taxes to be paid to the city, so I pay about ~150usd per year to the city, then an additional 300usd during tax return season after having made just below 1k in the year. Thankfully I was able to take advantage of deducting business expenses (paypal fees, advertising on FA, buying a tablet for only doing commissions on) to balance how much I paid out.

I got PayPal, I think it's a personal account. I pay taxes through the government though, not through them, so there's less possible confusion on the whole thing. It's not full-time, just a side business, but brings in enough that I'd rather pay taxes and get things as tax write-offs then attempt an audit on the whole situation :(

I use personal paypal.

Not sure if my taxes would help you as I'm spaniard but I pay 300$ monthly + 20% of my earnings if I work for outside europe. 40% my earnings if I work for europe. (It sucks I know! XD)

Wow that's a lot :o
I hope your government provides enough benefits for such large taxes

It is indeed unfair >_< But ohwell, we have good quality free healthcare among other things >_<U But yeah they need to change it... :'(

I use PayPal, and have a personal account merely because I am too lazy to upgrade it (but I need to because I need to lift that withdraw limit D:)
I'm also in the US & pay about 7-10% taxes I believe, which can amount to quite a bit as I make more & more yearly. That's why you have to try & think of everything you possibly can for deductibles!

But paypal says it's forbidden to use personal account for making money :c

That's strange, I've been using it for several years to make money & deposit it into my bank account. The only thing is I have a limit of only being able to withdraw amounts over 1,000$ once every 30 days.

Oh, good to know! I've been also using a personal account for 2 years for commissions, but now I want to upgrade just to be sure I won't get any problems x3

; u ; oh damn i been putting away 30%

Ouch :o But that must mean that you have free transport, medicine etc, right?
I have to pay 7% + fixed costs but government doesn't give much for that :l They seem to spend it for the war in Syria :'(

I actually haven't paid taxes yet

this year will be my first! we're in the same boat

I'm not sure what benefits I can get , but i really need to look into it. 30% is A LOT ;

I also still use personal account, so far nothings bad come of it yet
but I recommend business , as you've chosen c:

Well taxes vary by state, so it may be a little more, maybe a little less! If anything, you'll just have some nice left over cash LOL

Federal tax is the same all over the US. Only a few states have income tax. The federal tax rate this year is like 15% (which covers social security tax, medicare tax, etc).

ой, спасибо что задали этот вопрос, после обновления политик грядущих тоже заинтересовался, как быть х)

I use paypal and pay approximately 4,000 every year in taxes

I have a Paypal business account.

I use PayPal, the account is "personal" and actually taxes depend on you country! PayPal itself takes very small percentages (2-3,6%)! :)

Most people I know use Paypal. What type of account you chose is pretty much up to you, but if you are a faulty artist, I'd go with the upgrades account.

I hope your countries taxes are better than in the USA. There you pay federal tax, state income tax, state sales tax, local sales tax and local income tax. It's too complicated for a small, personal Business to figure out. If Trump really wants to reform the USA and create jobs, he can this a whole lot simpler...

I use Paypal personal, I've had no need to upgrade to a business account so far as I don't do conventions or had clients not using Paypal.
In Canada we're supposed to pay 15% for the lowest tax bracket, I paid a bit less than that because I had things to write off (like new computer, upgrades, etc).

I have PP Personal along with the linked debit card, I do this for commissions and for the rare tattoo appointment if they have it. Both are sent as gifts since I do paperwork/receipts at the end of the year for my self employment 10-99.
Many, if not all, times my commissions are used to buy tattoo/shop supplies so what I write off for taxes is what I bought with commissioned pieces. It's a little finicky but my tax guy does great working with me. Tho he just double checks my own work so make sure I didn't mess up haha.

Do you need a business bank account to upgrade to a PayPal business account?

I recently switched my Paypal to a business account. I take Paypal for my online commissions and I have a square account and card reader for taking credit card at Conventions.
My square account is linked directly to my business bank, which I keep separate from my personal account for clarity.
Taxes, okay these always suck. So your self employed and that comes with self employment tax, so I put 30% of everything aside for taxes which are paid as Estimate payments quarterly to the IRS. I also try to tuck away another 5-10% for supplies or "oh my god my computer exploded" expenses that do pop up now and then.

Закона о фрилансерах у нас нет в России. Это никак не регламентируется, есть только предпринимательская деятельность, которую надо доказать, что ты ей занимаешься. Следовательно, если у тебя небольшой доход никому это нахерн не нужно с тобой связываться.

Донат налогом не облагается!
ИП создавать нужны договора оформлять с клиентами. Чтобы работать с УСН
Если у тебя в РФ много клиентов, советую создать ИП, если нет то как доказать, в Германию налоговая не полетит допрашивать клиента. Есть вероятность контрольной закупки, но она будет в России. И доказывать надо по каждому пункту полученных денег.
Доказать будет еще сложнее если у тебя будет разные платежные системы, разные акки,
Еще внимание привлекают переводы более 25 000 р. закон о терористах, могут заблочит счет так как тебе надо будет доказать от куда деньги

или

честный вариант как физическое лицо, не зарегистрированное в качестве индивидуального предпринимателя. В этом случае с полученных доходов уплачивается по ставке 13% на основании представляемой в налоговый орган по месту постоянного жительства декларации о доходах

Я часто перевожу суммы более 25к. У меня ИП, и я плачу по УСН уже 2 года, ничего доказывать не просили.

Если платежная система зарегина на ИП особых вопросов не возникнет. Так как должен быть договор и ничего доказывать не требуется, другой вопрос с личными переводами.

http://www.kurer-sreda.ru/2016/04/0.....e-vashix-deneg

перевод 20 тыс. руб. каждый день в течение месяца другу также может вызвать вопросы у банка, и, скорее всего, вам также придется объяснять, зачем вашему знакомому ежедневные переводы денег


Операции с денежными средствами или иным имуществом подлежат обязательному контролю, если сумма, на которую они совершаются, равна или превышает 600 000 руб. либо равна сумме в иностранной валюте,


Следует знать про УК РФ, Статья 242. Незаконные изготовление и оборот порнографических материалов или предметов
Незаконные изготовление и (или) перемещение через Государственную границу Российской Федерации в целях распространения, публичной демонстрации или рекламирования либо распространение, публичная демонстрация или рекламирование порнографических материалов или предметов -
наказываются штрафом в размере от ста тысяч до трехсот тысяч рублей или в размере заработной платы или иного дохода осужденного за период от одного года до двух лет, либо принудительными работами на срок до двух лет, либо лишением свободы на тот же срок.

http://www.worldwide-tax.com/russia/russia_tax.asp

Please keep in mind, you may be able to declare fees from PayPal as business expenses, as well as computer, Internet, electricity, and art supply costs. You may need to carefully document these things, but it can be worth it.

From the link above: "A self-employed individual is obligated to make advance payments on income tax that will be offset on filing an annual report. In the case of a new business, the advance payments will be calculated on the basis of the business owner's estimate. The advance payments will be made at least 3 times in each year.
Certain payments are deductible from taxable income as detailed below."

Working for yourself takes a willingness to be pro-active in finding new clients, taking care of old clients, managing bookkeeping, and managing your time so deadlines are met and you still have time for yourself. Good fortune!

Thank you!

I use my mothers paypal when she'll let me sense I don't have one and she's my payee for SSI.

Paypal business account here. In the UK we have a personal allowance for income that is tax free. Currently that threshold is around £11000, although you must still declare your income if it is below this. You also must pay a National Insurance tax which goes toward state pension and other things such as the National Health Service. Currently I pay around 6% a year toward taxes, but you never know when you could need more. It's always good to set money aside.

I use Paypal, have a business account, and have to pay close to 20% on taxes (US citizen).

Here in Germany you have tax free side earning sums of around 8000€, but if it's your main job to draw commissions and you're above that tax free borderline, you pay based on your marital status and your yearly income. It ranges from 14-42%. Around 40.000 € income per year you pay 35% income taxes. Oh, and some additional tax stuff, because our country loves taxes.

What payment system you are using? Paypal, payoneer, Western Union, etc?
Paypal, it's a nice, comfortable way to transfer money between other accounts and banks. You'll also find a vast majority of people prefer it over anything else and it's generally the safest option, provided you stay within paypals rules. Worth noting: transferring pornographic content, art or not, is a breach of TOS. If you're caught, the money in the account will not come back to you. So it's worth making sure any transactions are completed legitimately and no notes are left from/by customers on the content of what they're paying for.

For paypal users, is your account "personal" or "business"?
Personal

I wanted to use PayPal, but here in Belarus there is no way to withdraw money to my card. So I started to use Payoneer. I don't pay taxes because my earnings are very small. I haven't register my income anywhere. Yet :D

I only pay 3% fee for transaction (customers can take this fee to themselves) and $30 USD annual fee.

Sounds good!

The only downside for me, is when I create payment request, Payoneer asks me to fill in information about my customer. First name, second name, email and real address (Country and State). I had no problems with it so far, but I'm afraid some people wouldn't like to provide me with this information.