If I use a personal PayPal account for Shopify dropshipping will PayPal hold my funds that I recive from the customers or put me in some sort of PayPal jail?
Paypal holds money if you are getting in your personal paypal account for 21 days till the account holder does not become an established seller with PayPal. Use PayPal to receive commercial payments (i.e. for goods and services) over a period of at least days after the date of the first commercial payment you received.