Peter here from Shopify Support!
Ultimately, this choice would be up to your discretion, however, I would recommend creating a Paypal account specifically for your business instead of using your personal account. The reasoning behind this is because when a customer pays via Paypal, they will see the account name that the funds are sent to. To help build your brand, and trust with your customers, it would look better if the funds went to a business account vs a personal account.
As for whether Paypal allows dropshipping, I'm not entirely sure! I'd recommend reaching out to Paypal support as they would be able to give you the best guidance on what type of businesses they allow on their platform.
If there's anything else I can help with please don't hesitate to reply back and I'll happily help out!
All the best,