Thoughts on startups by investors that
fund them & entrepreneurs that run them

Blog Archives

The Right Way to Not Pay Yourself

Posted by on April 9th, 2013

Today I received an email asking me to clarify what I wrote last month in Why sweat equity often stinks. The person quoted the sentence in italics below and asked “what does that mean, exactly?” I’m including the whole point because the context helps:

Founders work for less than fair value and record the difference between actual pay and fair

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The Startup Clock Starts When You Incorporate

The official start date for your startup is the date you incorporate the business. This is obviously important for tax purposes, but may also dramatically influence how potential investors, customers, and competitors look at you.

My rule of thumb expectation is that it should take two months to set up the legal entity, six months to finalize the business plan,

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