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OK, but wouldn't founders have "substantial" ownership? Yet the implication was that even founders had to be paid minimum wage.
by cperciva 12y ago
OK, but wouldn't founders have "substantial" ownership? Yet the implication was that even founders had to be paid minimum wage.
- joshu 12y agofor what it's worth, at my last startup I paid myself zero salary (as CEO/founder with significant ownership) and neither lawyers nor accountants squawked.
- boulos 12y agoIn California at least, that's because you can sue the company for underpaying you (at least 2x minimum wage as stated above) but others cannot bring that suit on your behalf. I don't believe California has any sort of "significant ownership" bar. So yes, the $1/yr salaries are against the rules, but just don't sue your own company.