Page 13 - THE NOTICEBOARD EDITION 62 SEPTEMBER 2020
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October, 2008, 2020
September Page 13
Page 13
How to Pay Yourself as a Sole Prorprietor
Pros of a sole proprietorship to grow something big or
· Start right away: You work in an industry that
d o n ' t n e e d t o often deals with legal issues,
i n c o r p o r a t e , b u t it may be worth putting time
remember that you may into setting up an LLC/LLP/or
need to have a business Corporation. The Balance
license. goes deeper into different
· No lawyer needed: It's business structures.
easy to make it happen,
legally. How do I pay myself as a
· Simple taxes: Very simple proprietorship?
forms to fill! Now, for the good part -
ole proprietorship is getting paid! The first
one of the simplest C o n s o f a s o l e recommendation is that you
Sforms of business proprietorship set up a business bank
ownership in Ghana. It is the
· Liability. The one major account, so that you can keep
most popular form of business a d v a n t a g e o f a your business and personal
in Ghana. This popularity may corporation is that it's a transactions separate. If you
be attributed to its simplicity buffer between you and a aren't using a different name
when setting up and the ease client. It is possible as a for your business, you can
of management. This form of sole proprietorship that open up a business account in
b u s i n e s s h a s m u l t i p l e you can personally be your own name. If you want to
advantages to the sole chased down for your use a different business
proprietor. business debts. name, you'll need to file a
· More work. You may have DBA (doing business as or
W h a t i s a s o l e to do more as a business trading as).
proprietorship? owner, and handle more Put all checks, sales, and all
According to the Registrar responsibilities. income from the business
General, "a sole proprietor is
· More taxes. You have to directly into that business
s o m e o n e w h o o w n s a n pay both personal and account first. It's best
unincorporated business by self-employment taxes. practice to have a dedicated
themselves." The business can credit card or charge card
operate - or trade - under a Ultimately, you should make that's just for the business,
different name than your own, a decision about your
but ultimately you are the business structure based on
owner: all profits from the what you hope to do. If it's a
business must go to you, and small business or even a self-
you have an obligation to employed practice, then a
report them. sole proprietorship could be
a good option. But if you want
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