How to pass PayPal verification with a Michigan LLC
What PayPal asks for at signup, and which Michigan LLC documents satisfy each requirement.
By Edmond Hui · Last updated: August 4, 2026
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.
PayPal verifies business accounts under US financial regulations before allowing full payment capabilities. For a Michigan LLC, PayPal requires documentation confirming the business entity name and EIN, proof of business existence (your Articles of Organization on file with Michigan, or a Certificate of Good Standing), identity verification for the business owner, and address proof. PayPal first checks national databases; documents are only requested when automatic verification fails.
In Michigan the entity behind that check is an LLC created by filing Articles of Organization, which costs $50. Michigan does not publish a processing time for LLC filings, so treat state approval as the open-ended step in your timeline rather than the PayPal review. Because Michigan keeps members and managers off routine public filings, PayPal has no public state record to match your owner name against, and relies entirely on the identification you upload.
What PayPal requires, and how a Michigan LLC meets each
| Requirement | How your Michigan LLC satisfies it |
|---|---|
| EIN / Tax Identification Number | Provide your federal EIN (free from the IRS; non-US founders without an SSN must apply via Form SS-4 by fax or phone rather than the online tool) — independent of Michigan. |
| Business name consistency | Use the exact LLC name as Michigan recorded it on your Articles of Organization; it must match your bank account holder name. |
| Proof of business existence | Upload the Articles of Organization Michigan returned to you, stamped and approved. |
| Owner identity document | Provide a government ID for each beneficial owner, even though Michigan names none of them publicly. Michigan publishes no member or manager, so the platform relies entirely on the ID you upload — names must match your operating agreement. |
| Business address proof | Use a US street address registered to the LLC in Michigan (your Michigan registered-agent or virtual business address), since a PO box is usually rejected. |
Michigan-specific things to watch
- Michigan keeps both members and managers off routine public filings, but you must still upload beneficial-owner identification directly to PayPal. State-level anonymity does not exempt you from the platform's KYC. (Articles of Organization (Form CSCL/CD-700) require only the company name, purpose, duration, resident agent, and registered office, signed by an organizer who may be a third party, and the annual statement under MCL 450.4207(3) requires only the resident agent's name and registered office address. No member or manager is listed on any routine public filing. One caveat: MCL 450.4103(2) requires the annual statement to name the person signing and the capacity in which they sign, so a member who signs it personally appears on the public record (MCL 450.4103(3) lets an authorized agent sign instead). A professional LLC is no exception (form CSCL/CD-701 names no member or manager either) but its Article V attests that all members and managers are licensed or otherwise legally authorized to render one or more of the services stated, except as Section 904 of P.A. 23 of 1993 provides; that limits who may own a PLLC, not who is disclosed.)
Michigan sales tax & nexus rules for PayPal sellers
Michigan charges a 6% state sales-tax rate. Payments through PayPal are not covered by marketplace-facilitator laws — you collect and remit yourself. Registration is required before your first taxable sale if you have physical presence in Michigan (an in-state location, inventory, or employees), or once you cross Michigan's remote-seller economic-nexus threshold of $100,000 in sales or 200 transactions in the previous calendar year.
Michigan has a flat 6% state rate with no local add-ons, making it straightforward for compliance. Michigan does not tax services generally but does tax the delivery of digital goods and software. Michigan is an SST member state. Register through Michigan Treasury Online (MTO).
Register for Michigan sales tax directly with the state: mto.treasury.michigan.gov.
How to verify your Michigan LLC on PayPal
- EIN / Tax Identification Number. Provide your federal EIN (free from the IRS; non-US founders without an SSN must apply via Form SS-4 by fax or phone rather than the online tool) — independent of Michigan.
- Business name consistency. Use the exact LLC name as Michigan recorded it on your Articles of Organization; it must match your bank account holder name.
- Proof of business existence. Upload the Articles of Organization Michigan returned to you, stamped and approved.
- Owner identity document. Provide a government ID for each beneficial owner, even though Michigan names none of them publicly. Michigan publishes no member or manager, so the platform relies entirely on the ID you upload — names must match your operating agreement.
- Business address proof. Use a US street address registered to the LLC in Michigan (your Michigan registered-agent or virtual business address), since a PO box is usually rejected.
Non-US founders with Michigan LLCs
Non-US founders can open a PayPal US business account for a Michigan LLC, but PayPal may ask for additional identity documentation beyond the Articles of Organization. Pairing the Michigan registration with a US business address and an EIN is the standard path. A US bank account is still needed to withdraw funds to a US account.