If you’re an international e-commerce seller targeting U.S. customers, PayPal is almost essential. It’s one of the most trusted payment methods in the U.S., and offering it can significantly increase your conversion rates. But opening and maintaining a U.S. PayPal account as a non-resident isn’t easy.

In this post, we’ll cover:

  • Why U.S. PayPal matters for e-commerce

  • What’s required to open an account

  • Common challenges and risks

  • Alternatives like Hong Kong PayPal

  • How House of Bookkeepers helps with EIN and ITIN to make this process smoother

Why a U.S. PayPal Account Boosts Sales

Having a PayPal account based in the U.S. gives you:

  • Lower transaction and conversion fees – Avoid multiple rounds of currency conversion.

  • Higher trust with U.S. buyers – Customers are more likely to check out when they see PayPal with U.S. verification.

  • Cleaner bookkeeping and compliance – Funds stay aligned with your U.S. business entity.

For these reasons, most of our successful e-commerce clients include PayPal in their checkout options.

What You Need to Open a U.S. PayPal

Opening a PayPal account in the U.S. requires more than just clicking “Sign Up.” Here’s what typically works:

  • U.S. LLC – The foundation. Multi-member LLCs are better than single-member ones because PayPal recognizes them as businesses rather than individuals.

  • EIN (Employer Identification Number) – Essential for the business setup and tax reporting. Don’t have one? We can help you obtain an EIN quickly: EIN services.

  • U.S. business and personal address – PayPal expects these during verification.

  • ITIN (Individual Taxpayer Identification Number) – A must for non-U.S. owners when PayPal requests identity verification. Get yours with our ITIN service.

  • Identity verification – Once you process higher volumes, PayPal will ask for documents to prove your U.S. ties.

Important: PayPal requires that a U.S. account be opened from within the U.S. or on a U.S. server. VPNs won’t work reliably.

Common Problems Sellers Face

Even with the right setup, non-U.S. sellers often face:

  • Account freezes or shutdowns when documents don’t match expectations

  • Higher fees if forced to use a non-U.S. PayPal

  • Tax complications if funds route through your home country

  • Sales tax nexus issues on platforms like Shopify

That’s why preparation—especially with EIN and ITIN in place—is critical before scaling.

Alternative: Hong Kong PayPal Accounts (or Other Jurisdictions)

When a U.S. PayPal account isn’t feasible, a Hong Kong PayPal setup is one of the more frequent alternatives used by international clients. Here’s how it compares:

Pros:

  • Lower account closure risk / less scrutiny (in many cases)

  • Relative accessibility for international sellers

  • Decent gateway option when U.S. PayPal is blocked or impossible

Cons & considerations:

  • Higher fees or conversion costs

  • Two-entity setup needed (U.S. LLC + Hong Kong PayPal)

  • Ongoing compliance complexity, including audits, bookkeeping, and managing tax across entities

  • Sales tax nexus friction: If your Shopify or e-commerce platform is collecting U.S. state taxes, but your funds are held outside the U.S., reconciling that becomes more complex

Many of our successful clients use hybrid setups: U.S. bank and processing infrastructure, combined with Hong Kong PayPal accounts. This gives them flexibility while mitigating excessive PayPal closures or rejection.

Why ITIN and EIN Are Key

When PayPal asks for tax IDs, you’ll need both business and personal identifiers:

  • EIN – Ties your LLC to the IRS as a business taxpayer. It’s the foundation for banking, PayPal, and compliance. Get your EIN here.

  • ITIN – Identifies you (the owner) for tax purposes and satisfies PayPal’s personal verification requirements. Apply for your ITIN here.

At House of Bookkeepers, we are an IRS-Certified Acceptance Agent (CAA), which means we can verify your documents without requiring you to mail originals overseas.

Recommended Strategy for E-Commerce Entrepreneurs

Putting it all together, here’s a practical roadmap:

Step Action Purpose / Benefit
1 Form a U.S. LLC (preferably multi-member) Gives you a U.S. legal entity to pair with payment accounts
2 Apply and receive an EIN Required for company registrations and tax usage
3 Obtain an ITIN (with our help) Helps verify your identity and increase success with U.S. financial services
4 Try to open U.S. PayPal (from within U.S. / via U.S. server) If approved, you benefit from lower fees & better conversions
5 If denied, open a Hong Kong PayPal Use a jurisdiction with fewer rejections, used in tandem with your U.S. LLC
6 Manage compliance, bookkeeping, and inter-entity funds flow Keep records clean and aligned with tax and state rules

We encourage all serious sellers to try both PayPal options. If you can’t get a U.S. PayPal account, you don’t lose—you pivot to Hong Kong or another jurisdiction as needed.

How House of Bookkeepers Helps

We provide end-to-end support for global entrepreneurs:

  • EIN service: Quick and reliable EIN applications.

  • ITIN service: Fast, secure ITIN applications, verified without mailing passports.

  • Bookkeeping & compliance: Ongoing support to keep your U.S. operations smooth.

If you’d like help executing this strategy, feel free to reach out. We’d be happy to schedule a consultation and walk you through the steps personalized for your business.