A sole proprietorship is legal entity distinct from the  owner of proprietorship firm. You need to open a bank account in the  name of firm for making payment to employees and discharging other liabilities. You cannot transact business of proprietorship through you personal account. It also have tax implications.

sole proprietor can open a personal or business bank account and use it for business purposes

You can provide salary slip to your employees. The amount paid by you on behalf of the company will be recorded as loan taken by the company from you in the books of the company. As you paid salary from your own account, show that amount as loan in company books and book salary expenses..

 kindly check that no TDS was required to be deducted from their salary otherwise the company will be in default.

Under audit the amount paid by you to the employees can be shown as working capital loan given by the directors to the company.

Keep all other documents with you to proove that the payment was made for salary expense only and not for other transactions.

Dear client I'm sorry to hear that but a company is a separate legal entity and you have to open a bank account in the name of the company and only from that account you can pay to your employees

Though for all practical purposes, the sole proprietor and his/her business are one and the same, it is better to have a separate bank account in the  name of the proprietary business for income tax and other statutory requirements.

Being a sole proprietor, you don't need a business account. You can make the payments from your personal account as well. 

Feel free to get in touch for any legal query or assistance.

Regards,

Siddharth Jain

- Yes, you can use your personal account for the payment of salary from your personal account , however if the number of employees are more then it is necessary to open a business account for  the same.

- Further for the business transaction there should be a separate business account .

You can pay through your proprietary account