Basically a Business Account is intended for businesses however, that does not mean if you are not a registered business or a business of any type you cannot open one or upgrade to one.
There's really no cons per say, as Business Accounts simply have more features than Personal or Premier accounts. You can still shop online, send money, etc., same as can with a Personal Account. In addition, you can accept credit card transactions if you plan to sell anything.
You will be required to provide your SSN (or EIN) and you may have to make choice as to what type of business you are. (Sole Proprietorship will work if nothing else.) And it's possible PayPal can ask for additional proof of ID in the form of a Photo ID and a Utility Bill. It's also a very good idea to link and confirm a credit credit card which serves as additional proof of ID and a backup funding source. Note, if you now have a Personal Account that's verified with both a bank account and credit card, that will make upgrading to Business Account easier.
Business Accounts will display whatever name you register in your Account Profile under the business settings. (If you don't use a name there, I believe it defaults to your name.)
