Startups · Entrepreneurship

When should I start paying myself as a startup founder?

alok verma Software Engineer at Software Company

September 12th, 2016

With bills piling up not sure what would be the best time to start getting payroll in motion for founders. Would this be at a point where we receive funding or when significant revenues are in place?

Rafael Lamardo Founder CEO at Brained, MSc

September 12th, 2016

Be sure to put on your oxygen mask first before turning the help the person next to you.

Shams Juma

September 12th, 2016

It depends. If you're not going to raise venture funds, then wait until significant revenues are in place. The amount of salary you pay yourself will depend on a various number of factors (i.e. your personal circumstances, life style preference, etc.). Whatever you decide, keep the long term in mind by putting as much money you can back into your business, particularly in its early days. 

If you've raised venture funds, then $75K is the general salary for a seed round and around $120K post Series A.

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

September 13th, 2016

When has money enough and after pay all costs, tax e investment fund.

Suryanarayanan A Head, Incubator consulting services at Bhiveworkspace

September 13th, 2016

I always advice start up entrepreneurs to keep 2 funds before they start. One for the start up and the other for personal
 sustenance 

Sebastien Mirolo CEO DjaoDjin inc.

September 13th, 2016

That's one of the reasons why self-funded entrepreneurs often decide on a LLC. A pass-through entity means you don't have to put the founders/owners on payroll. You can push profits into your personal account as necessary. That's useful when business revenue can vary widely month-to-month and is barely enough to cover expenses most months.

Suryanarayanan A Head, Incubator consulting services at Bhiveworkspace

September 13th, 2016

You can pay yourself reasonable amount like Rs. 100K if cash flows permit or ensure you provide the amount in the books to show that your start up can afford you

Shrinath Acharya CEO at Excelfore

September 12th, 2016

... if your company is going to pay taxes, then pay yourself (and associated taxes).  Otherwise, pay yourself what you need.

Viktor Dmytrenko Digital Marketing Manager at Ubertesters

September 13th, 2016

This questions looks strange. If you are going to pay taxes and hire people you should pay yourself too.