Palantar

Re:Salary for Founders of a Broke Startup on Monday March 09, 2015 @11:20PM (#9175812)

Yeah, we did everything through Clerky which is recommended in the Y Combinator lecture I mentioned ( http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi... ) - which unfortunately is the same lecture that states quite strongly that you should always be paying minimum wage...

Re:Salary for Founders of a Broke Startup on Monday March 09, 2015 @11:19PM (#9175808)

And then the counter to my counter-example that I don't know is whether or not it still counts as at least 20% interest if at least 20% of the interest hasn't vested yet...

Re:Salary for Founders of a Broke Startup on Monday March 09, 2015 @11:09PM (#9175776)

I may have actually found a legal reason for this. I found an "Exemption for Executive Employees" - http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi... - wherein it appears to me (also not a lawyer) that anyone who owns at least 20% interest in a company is exempt from minimum wage requirements. Since everyone involved owns more than 20% I think this one is good enough for me!

Salary for Founders of a Broke Startup

Posted by Palantar on Monday March 09, 2015 @10:24PM
from the self-post dept.

I know that Y Combinator recommends that startups pay their founders to avoid legal hiccups later (Lecture 18 from How to Start a Startup) - but what about startups that are side projects with no investment? Is it still legally required to pay the founders? Do the founders have to loan money to the startup so that it can pay them?

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