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I made $200K and PayPal locked my account

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Re: I made $200K and PayPal locked my account

#221

Post by chris_wot »

scorpion032 wrote: post #217
chris_wot wrote: post #208

Earlier quoted context omitted.

What, so PayPal allowed him to use their service with a Social Security number, then they take his money because he doesn't have one? PayPal is the one at fault here. Don't let someone use your service without adequate ID. Tell them and require it before you can use the service.

You can deposit the funds without any tax details or linking any bank account. But you cannot withdraw it without one. If transferring money without SSN is illegal; I wonder how collecting it without one would be legal.

Then PayPal should make this very, very clear. In fact, I'd go further: they should mandate that you provide an SSN before you can collect money. It's unethical to do otherwise: anyone who uses PayPal to collect money will want to withdraw it.

Re: I made $200K and PayPal locked my account

#222

Post by shocks »

Hi there. Congratulations on your success, I'm very sorry to hear you're having problems.

The issue seems to be that PayPal are worried you're doing something illegal and are not going to pay tax. My advice would be to get a lawyer so you can do everything required to pay tax correctly. In the mean time, try to get some written confirmation from PayPal that your money will be safe while you are resolving this issue - that last thing you want is the money 'disappearing'.

Re: I made $200K and PayPal locked my account

#223

Post by nchuhoai »

winter_blue wrote: post #165
sp_ wrote: post #10

When you say you're an international student, do you mean you're in the US on an F-1 visa? If yes, you might be in violation of your visa terms. If you have not researched this, please start reading at http://www.justanswer.com/immigration-law/330cd-holding-f-1-...

I was an F-1 student too, and here's my suggestion: This coming Summer, apply for pre-completion OPT . You are allowed to start a company (register a corporation), and work for it under OPT status. I have inquired about this on HN before: https://news.ycombinator.com/item?id=1523021 I also verified with the DSOs (Designated School Officials) at my university, who are authorized to give legal advice on this matter, an…

You can work for your own company on post completion OPT as well? I'm currently doing it on pre-OPT, but didn't know it was possible. Do you have the same "continous work requirement" as normal employment under post-completion OPT?

Re: I made $200K and PayPal locked my account

#225

Post by downandout »

InclinedPlane wrote: post #169
downandout wrote: post #150

Earlier quoted context omitted.

> And it's not because they are trying to be assholes, it's because fraud and money laundering are commonplace Actually, in large part, they are just being greedy assholes that are doing this because they can get away with it, and because it is profitable. They largely invented the freezing game, and they know how profitable it is. Of course fraud and money laundering are issues, however that is far from the OP's use…

What part of the law requires they look at his site? What part of having a really spiffy site on the internet instantly translates into someone running a legitimate company rather than a shell corporation? To be frank, you're talking out of your ass here. You have no idea of the problems that paypal is facing, and you are imaging that frozen funds are somehow identical to profit for paypal. That's not the case at all…

>What part of the law requires they look at his site?

This is not a legal issue. The law is on PayPal's side because of their draconian legal agreements. The freezes are a customer service issue, at least from the customer perspective. They are a profit mechanism from PayPal's perspective, and they don't really care about the customer service aspect because they have managed to flourish despite a horrific reputation.

If I still used PayPal for my payment processing, I'd sleep like a baby: I'd wake up crying every two hours.

Re: I made $200K and PayPal locked my account

#226

Post by ra »

winter_blue wrote: post #165
sp_ wrote: post #10

When you say you're an international student, do you mean you're in the US on an F-1 visa? If yes, you might be in violation of your visa terms. If you have not researched this, please start reading at http://www.justanswer.com/immigration-law/330cd-holding-f-1-...

I was an F-1 student too, and here's my suggestion: This coming Summer, apply for pre-completion OPT . You are allowed to start a company (register a corporation), and work for it under OPT status. I have inquired about this on HN before: https://news.ycombinator.com/item?id=1523021 I also verified with the DSOs (Designated School Officials) at my university, who are authorized to give legal advice on this matter, an…

Good advice. But also, get a lawyer!

Re: I made $200K and PayPal locked my account

#227

Post by nhangen »

downandout wrote: post #225
InclinedPlane wrote: post #169

Earlier quoted context omitted.

What part of the law requires they look at his site? What part of having a really spiffy site on the internet instantly translates into someone running a legitimate company rather than a shell corporation? To be frank, you're talking out of your ass here. You have no idea of the problems that paypal is facing, and you are imaging that frozen funds are somehow identical to profit for paypal. That's not the case at all…

>What part of the law requires they look at his site? This is not a legal issue. The law is on PayPal's side because of their draconian legal agreements. The freezes are a customer service issue, at least from the customer perspective. They are a profit mechanism from PayPal's perspective, and they don't really care about the customer service aspect because they have managed to flourish despite a horrific reputation.…

In many cases, Paypal is complying with the law, not the other way around. Paypal spends a lot of time/money on risk management. If they see a lot of money being funneled into the US, they are required to report and/or take action. It's as simple as that.

My business account just got similarly flagged and we provided all necessary documentation that proves we are a real business. They removed the flag in 24 hours.

Re: I made $200K and PayPal locked my account

#228

Post by winter_blue »

wyuenho wrote: post #197
winter_blue wrote: post #191

Earlier quoted context omitted.

This is a bad idea. Getting an SSN does not solve the bigger issue of work authorization. Having an SSN would make Paypal happy, but he could be deported by SEVIS/USCIS/ICE for earning an income without proper work authorization. F-1 OPT is the only status I know that allows you to earn an income while being self-employed. Even on an H-1B doing what the OP did would be a violation of status, and could lead to deporta…

Getting an SSN does not solve the bigger issue of work authorization. That's right, but I didn't say getting an SSN will get you a work authorization. As an international student, you are legally allowed to be employed on-campus[1] on a part-time basis provided that you maintain your student status, which basically means you have an above minimum GPA and not serving any academic disciplinary actions. In order to get…

I'm not sure what you're point here is.

Yes, getting an SSN is easy (just find an on-campus job), but cashing out the $200k could lead to the OP being deported for earning an income without proper work authorization.

If you get an SSN, you are still only allowed to receive an income from authorized jobs/sources. On-campus jobs are one of them. But a self-run online business, does not count as one -- unless you get it authorized via OPT (or some other means.)

> Generally, that's impossible

It is indeed possible to work for your own company while on F-1 OPT status. I've explained it in detail on this thread: https://news.ycombinator.com/item?id=5191832 (which I referred to in the grandparent comment).

I should add, "incorporate a sole-proprietorship" is a non sequitur. The term "incorporate" by definition describes the act of forming a corporation. A sole-proprietorship is when you operate a business on your own name, and not under a company's name. It does not give you the "liability shield" that a corporation or LLC provides, and is generally a bad idea for most businesses.

Re: I made $200K and PayPal locked my account

#229

Post by winter_blue »

nchuhoai wrote: post #223
winter_blue wrote: post #165

Earlier quoted context omitted.

I was an F-1 student too, and here's my suggestion: This coming Summer, apply for pre-completion OPT . You are allowed to start a company (register a corporation), and work for it under OPT status. I have inquired about this on HN before: https://news.ycombinator.com/item?id=1523021 I also verified with the DSOs (Designated School Officials) at my university, who are authorized to give legal advice on this matter, an…

You can work for your own company on post completion OPT as well? I'm currently doing it on pre-OPT, but didn't know it was possible. Do you have the same "continous work requirement" as normal employment under post-completion OPT?

> Do you have the same "continous work requirement" as normal employment under post-completion OPT?

If by that you're referring to the rule that mandates you maintain minimal periods of unemployment; Yes.

Since you're running your own company, as long as you don't fire yourself you should fulfill this requirement.

The F-1 OPT status allows for upto 60 days of unemployment though. This means that means if you were to work a regular job, you still do have a little gaps of time in between switching jobs to search for a new job.

Re: I made $200K and PayPal locked my account

#230

Post by philhippus »

goldfeld wrote: post #214
ChuckMcM wrote: post #101

Sad story, I agree with folks who say you should seek out legal advice. HEADS UP FOR ANYONE ELSE CONSIDERING THIS: If you are going to receive funds with PayPal and they are going to exceed the 'occasional sale' guidelines (which some people interpret to mean the same guidelines at the rule for sending an IRS 1099 form which is First establish your business presence in the US, that means creating an LLC, getting an E…

Here's a related question. PayPal is officially in my country. Can I take money from anyone in the world and receive it in under my country's law?

You would need to read your country's law books, which may differ depending n whether you are from South Africa, Japan, Romania or anywhere else where you can use Paypal.
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