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Atmrix

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YC

Y Combinator Cast

04/28/17

@ Y Combinator

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

Video

YC

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

@ Y Combinator

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

04/28/17

Related Takeaways

SA

Sam Altman

03/18/17

@ Y Combinator

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

YC

Y Combinator Cast

04/28/17

@ Y Combinator

It's crucial for founders to form their startup as a separate legal entity to protect themselves from personal liability.

YC

Y Combinator Cast

04/28/17

@ Y Combinator

Founders need to ensure employees are paid at least minimum wage, which in San Francisco is about $2,000 a month.

KN

Kirsty Nathoo

04/28/17

@ Y Combinator

Founders need to be incentivized to continue working on their startup; without vesting, they could walk away with full ownership at any time, which undermines their commitment to the company.

KN

Kirsty Nathoo

04/28/17

@ Y Combinator

Founders must use investor funds responsibly to build the company, as misusing these funds can lead to severe consequences, including losing investor trust and support.

YC

Y Combinator Cast

04/28/17

@ Y Combinator

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

YC

Y Combinator Cast

04/28/17

@ Y Combinator

Founder breakups can become contentious if founders haven't paid themselves, leading to leverage for the fired founder in negotiations.

BF

Brad Flora

07/08/22

@ Y Combinator

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

VK

Vinod Khosla

01/09/19

@ Y Combinator

Founders should be ambitious; if they aren't, they'll hire a team to build a zero-million-dollar company instead of a billion-dollar one.