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I have one site up that is struggling to find a MVP and getting dangerously close to running out of cash.

I have PayPal set up under that entity. However, now, I'd like to create a separate website in a completely different industry, but I'd like the cash generated from that new site to flow into the same company.

Much like 37signals does it, why can't I have separate sites flowing into the same company? I don't see why I have to create any new legal filings or separate administrative costs like legal and accounting.

Anyone have any thoughts or advice on whether I can do this?

I read here A question about how to handle one company that does two different things. but it didn't give a conclusive answer.

Thanks!!!

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5 Answers

up vote 5 down vote accepted

PayPal does not care which site is referring users to it. If you use something like a "donate" button, all the PayPal code has is a unique payee code, where to forward donated funds. You can put this button and as many sites as you like. PayPal even provides you with a separate code to include the link into emails.

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I see what you're saying with the "donate" button, but what about subscriptions at two different sites with two different names? As long as I tell subscribers at "Site B" that charges on their credit cards will show up as charged to "Site A", do I have to do anything else? – MisterE Dec 13 '10 at 18:03
I have not used subscriptions but, whatever you name your button is essentially a simple way to direct users to PayPal where user can make a payment. The code usually includes several parameters that allow PayPal to process the payment for a particular purchase. I believe you can even customize that code to specify where to direct your customers in case of successful or failed transaction. In general you can generate as many button codes as you like and customize the code to meet your needs, as long as you do it from your PayPal account. Having valid ID is essential for money to reach you. – usabilitest Dec 15 '10 at 19:05
up vote 1 down vote

Ah, stupid questions:

I have one site up that is struggling to find a MVP and getting dangerously close to running out of cash.

How can a SITE run out of cash? A business, yes, espeically a legal entity. But a SITE is putely a domain attached to a qweb server. No bank account etc.

Much like 37signals does it, why can't I have separate sites flowing into the same company?

Ok, now it is not a SITE but a legal entity (i.e. some sort of corporation). How is that related? A corporation can own multiple sites etc.

I have a paypal account for accepting credit cards and it is not linked to ANY site, just my business.

I don't see why I have to create any new legal filings or separate administrative costs like legal and accounting.

Wehere did you even get the idea you ahd to file for the first site?

Sorry if that all sounds stupid, but at the same itme I totally fail to see what you actually mean. Sites are not a busieness. They can not own an account, have a paypal registration or run out of cash.

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up vote 1 down vote

Not only can you use a given PayPal account for multiple activities (websites owned) by a given company - that is what PayPal apparently wants you to do.

Section 2.2 of the PayPal User Agreement (http://dana.sh/dESW4N) says that "You may only hold one Personal Account and either one Premier or one Business Account."

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

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up vote 0 down vote

You can definitely use the same paypal account. What I'd recommend is that you create one paypal account and give it the name of your business, E.g 'Mister E Software LLC', and then you can use the same paypal account on all of your websites.

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up vote -1 down vote

From an accounting standpoint, mixing finances from two businesses is a bad idea. I would advise against it as you may cause accounting and potentially legal problems.

UPDATE:

My CPA has advised me to avoid mixing funds from my main business with my personal or other business finances. Here is what a tax lawyer and the IRS have to say:

NOTE: If you reside outside of the litigious USA, this may not be applicable.

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what kind of legal or accounting problems? – TimJ♦ Dec 14 '10 at 2:58

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