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I never understood what self employed means vs a startup. If I start a Delaware C and raise 20M am I self employed?
by alexnewman 3y ago
I never understood what self employed means vs a startup. If I start a Delaware C and raise 20M am I self employed?
- Roark66 3y agoSelf employed means you're a "one man band" and you have no intention of changing it. A startup is when you may start on your own, but you want to grow it, have employees etc. I decided long time ago the former makes me a lot happier than the later.
- elzbardico 3y agoTechnically yes, but in practice we would call you a founder on this situation. In common parlance self-employed is something reserved to people who do free-lancing or have small bootstrapped business: I have a personal list of criteria that I use to differentiate from the non-freelancing self-employed and the startup founder. 1 - No direct subordination relationship with a customer, you are a service provider, not a contractor. 2 - Focus is on revenues, profit and low debt, not growth above everything. 3 - No founding from venture capital investor. If you have a partner most probably she is also part of the operation, or expect to have a return on their investments from what the company sells, not by the company being sold. 4 - You draw a salary, if any, from the operation. There's no other source of money for you to survive other than your personal economies (see 2 and 3)
- alexnewman 3y agoI'm more interested in the legal distinction