Hi Guys,
I am in the process of starting my own sole proprietorship. We specialize in web content development and SEO content. We have been operating through my personal account for a year, and now I am taking the initiative to register my business.
I have a few questions regarding my part-time writers:
1. How should I pay them each month? Should I issue checks (to their account, does it have to be their OWN account?) or pay in cash (with a signed receipt from them)? Their individual pay does not exceed 3000/- due to the hours they work.
2. Is it appropriate to provide them with letters stating their duration of work and performance appraisal? Would it hold value for them in the future?
3. What receipts should I keep on file? I reside in a town but am registering my business in my birthplace city, Chennai. Can I include telephone bills from my town residence as expenses? What about fuel expenses or any other receipts I should retain?
4. Which bank do you recommend for a sole proprietorship account?
Thank you in advance for your assistance! I am new here and eager to learn more!
Best Regards,
Krishna
From India, Madras
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I am in the process of starting my own sole proprietorship. We specialize in web content development and SEO content. We have been operating through my personal account for a year, and now I am taking the initiative to register my business.
I have a few questions regarding my part-time writers:
1. How should I pay them each month? Should I issue checks (to their account, does it have to be their OWN account?) or pay in cash (with a signed receipt from them)? Their individual pay does not exceed 3000/- due to the hours they work.
2. Is it appropriate to provide them with letters stating their duration of work and performance appraisal? Would it hold value for them in the future?
3. What receipts should I keep on file? I reside in a town but am registering my business in my birthplace city, Chennai. Can I include telephone bills from my town residence as expenses? What about fuel expenses or any other receipts I should retain?
4. Which bank do you recommend for a sole proprietorship account?
Thank you in advance for your assistance! I am new here and eager to learn more!
Best Regards,
Krishna
From India, Madras
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Hi Krshna,
First and foremost, I would like to congratulate you on your decision to launch your baby!!!
Regarding the queries raised:
1) I would suggest, since you're going to register your organization, for the long term, I would advise you to credit the salary to the employee's account which should be in their name only. The cash method is very tedious and can lead to disputes.
2) Giving them work experience letters is absolutely a must as they are putting in work at your place, and it will also act as branding for your company when these individuals pursue jobs elsewhere and present your work experience letters.
3) You need to save all the bills that you are incurring as expenses for your business. Also, in that case, you would need to show your home city address as the registered office address.
4) I don't know about the bank, but check out the cooperative banks after doing their reference checks with the RBI if you have any sources there. They would be much more flexible with a sole proprietor company rather than a big private or multinational bank.
Regards,
Ranjit
From India, Mumbai
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7First and foremost, I would like to congratulate you on your decision to launch your baby!!!
Regarding the queries raised:
1) I would suggest, since you're going to register your organization, for the long term, I would advise you to credit the salary to the employee's account which should be in their name only. The cash method is very tedious and can lead to disputes.
2) Giving them work experience letters is absolutely a must as they are putting in work at your place, and it will also act as branding for your company when these individuals pursue jobs elsewhere and present your work experience letters.
3) You need to save all the bills that you are incurring as expenses for your business. Also, in that case, you would need to show your home city address as the registered office address.
4) I don't know about the bank, but check out the cooperative banks after doing their reference checks with the RBI if you have any sources there. They would be much more flexible with a sole proprietor company rather than a big private or multinational bank.
Regards,
Ranjit
From India, Mumbai
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Hi Ranjit,
Thank you so much for your reply. It feels great to know that there are people here who can help you get started and moving! Your reply has really shed light on my doubts, and now I think I can get it done confidently :)
Thanks again!
Cheers,
Krishna
From India, Madras
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Thank you so much for your reply. It feels great to know that there are people here who can help you get started and moving! Your reply has really shed light on my doubts, and now I think I can get it done confidently :)
Thanks again!
Cheers,
Krishna
From India, Madras
Acknowledge(0)Amend(0)
Hi Krishna,
You need to register with the local municipal authorities. You need to have your PAN card and shall also maintain books of accounts. Prepare a small book containing employment rules, etc. Every employee needs to give you a receipt that they have read the conditions. In case of any dispute, it will save you from the legal process. Try to keep your fixed costs low.
Open your bank account with a public sector bank with national presence, as you may need branches of that bank depending upon your business needs. Private sector banks levy very high charges on business accounts. Before opening, compare the terms of the bank account. There are some hassles in public sector banks, but you save a lot of money. If your account is going to maintain high balances, then among private sector banks, IDBI Bank is a better choice. Best of luck.
From India, Gurgaon
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You need to register with the local municipal authorities. You need to have your PAN card and shall also maintain books of accounts. Prepare a small book containing employment rules, etc. Every employee needs to give you a receipt that they have read the conditions. In case of any dispute, it will save you from the legal process. Try to keep your fixed costs low.
Open your bank account with a public sector bank with national presence, as you may need branches of that bank depending upon your business needs. Private sector banks levy very high charges on business accounts. Before opening, compare the terms of the bank account. There are some hassles in public sector banks, but you save a lot of money. If your account is going to maintain high balances, then among private sector banks, IDBI Bank is a better choice. Best of luck.
From India, Gurgaon
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