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The founders of my company (not a YC startup) always paid themselves a salary. You can't really expect someone to work hard whilst not even earning enough to su
by intranation 17y ago
The founders of my company (not a YC startup) always paid themselves a salary. You can't really expect someone to work hard whilst not even earning enough to survive.
Also, the typical response to the above of "live off savings" is backwards, because if it's your company and you believe in it, your savings are the first round of investment.
- idlewords 17y agoSo rather than live off your savings, you invest your savings into a startup, and then use the money to pay yourself a salary. Clever hack!
- sjf 17y agoAnd now you get to give 20% of that money to the government!
- jlangenauer 17y agoAt least here in Austalia, I hear the done thing is to call your initial investment a loan from you to the company - that way, the company can "repay" the loan to you, and because it was your money to begin with, you don't have to pay tax on it. (Disclaimer: I'm not an accountant)
- ryszard99 17y agoi can confirm this is actually the case. my GF and i have started up own own company (plug: http://www.boolos.com/ http://www.boolos.com/ ; disclaimer: head hunting in energy). our accountant has given us exactly that advice, and you dont pay tax on it.