Can I appoint a director with salary in my sole proprietorship company?
A sole proprietorship is a business entity owned by an individual. There are no “shares” of stock sold. That is a corporation. If your business is big enough and income flow is favorable you can set up a LLC, S-corporation etc. That will give you some tax advantages. You need to consult a Certifed Public Accountant and a lawyer on the best way to structure your company. But as a sole proprietorship you can do what you want to do basically. Because you’re taking all the risk, you are personally responsible for the actions of you and your employees, your personal assets are not protected, you’re in the same tax bracket as another company’s employee. So you need to look into re-structuring if you don’t want to be held personally responsible for anything you or your employees do. Because if your busineess goes down, you and all your personal possessions are ripe for the taking too….
