My question is, I am selling bitcoin to a trusted individual, he sends me PayPal for bitcoin. He will be sending me $5,000 in PayPal per day and I will be sending him $4,750 in bitcoin per day keeping $250. Do I need a license to conduct this or any other tax advice I should know about? Thanks.
You wont have any problems with taxation but the real problem lies either on the user you are transacting and on that paypal account you do have.
Be sure that those transactions wont really flag in Paypal because anytime it can really be locked if the platform would see it suspicious.
Those are the only things that you should be concerned of not on the taxation thing.