I'm forming an S-corporation in New York with a friend, he mailed all the necessary paperwork yesterday. In trying to keep things simple, I figured that since we'll be using Paypal to receive the payments from our online store, that we did not need to set up a business checking account in the bank. For now, we will use Paypal to store our revenue and link to my friend's personal bank account in case we need to make a transfer. However for some reason, I found out Paypal does not allow a corporation to be listed as an account owner, they still require an owner's name on the account. Is there any reason for such a policy?
In addition to receiving payments, I'd also like to use the Paypal to pay our expenses, such as wholesale orders, advertising, etc. I would imagine having all the revenue and expenses in one account will make it easier to track profit. I've heard that Paypal offers a debit or credit card, which I assume takes money right out from the account. Would Paypal allow this card to be issued in the corporation name, instead of an individual?