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When should I start paying myself as a startup founder?

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?

8 Replies

Shams Juma
2
0
Shams Juma Entrepreneur
Founder
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.
Shrinath Acharya
0
0
Shrinath Acharya Entrepreneur
CEO at Excelfore
... if your company is going to pay taxes, then pay yourself (and associated taxes). Otherwise, pay yourself what you need.
Rafael Lamardo
4
0
Rafael Lamardo Entrepreneur
Founder CEO at Brained, MSc

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

Suryanarayanan A
0
0
Head, Incubator consulting services at Bhiveworkspace
I always advice start up entrepreneurs to keep 2 funds before they start. One for the start up and the other for personal
sustenance
Viktor Dmytrenko
0
0
Digital Marketing Manager at Ubertesters
This questions looks strange. If you are going to pay taxes and hire people you should pay yourself too.
Suryanarayanan A
0
0
Head, Incubator consulting services at Bhiveworkspace
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
Rod Abbamonte
0
0
Rod Abbamonte Advisor
Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute
When has money enough and after pay all costs, tax e investment fund.
Sebastien Mirolo
0
0
Sebastien Mirolo Entrepreneur
Subscription Product Engineering
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.
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