Founders must be paid as employees; working for free is illegal and can create liabilities for the company.

I should ensure that every founding team member receives a salary they need to live, while also providing them with equity to motivate their hard work.

Avoid lavish salaries; maintain a lean operation and pay yourself at least minimum wage to ensure financial sustainability.

Founders frequently waste money on hiring, especially when they pursue high-salary candidates from large companies, believing they will significantly boost productivity.

As you hire more people, your expenses will increase beyond just salaries, so it's important to anticipate these changes. An employee's total cost to a startup can be 25% to 50% more than their salary, so if you pay an engineer $100,000, the fully loaded cost could be between $125,000 and $150,000.

Pay yourself and your co-founders to avoid complications during founder breakups; think of co-founder wages like a marital prenup.

San Francisco is unique in that it celebrates the challenges of starting a company, creating an environment where entrepreneurs feel understood and supported.

Founders should be generous with equity for early employees, as they are the ones who build the company over time.

If you're in the Bay Area and take a job with Zapier, we'll pay $10,000 to help you relocate anywhere.