How should the company officers be paid, in a start-up company?

April 7th, 2009 | by Rick |
luvitastore asked:


I am investing $250,000 & the Co-owner of our C-Corporation company is investing $50,000. How should we work out our salaries pay & how about the bonus pay? I am the founder with the experiences. We want to be able to contribute majority of the profits towards growing the business.

LOUIE
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  1. 2 Responses to “How should the company officers be paid, in a start-up company?”

  2. By CESAR on Apr 9, 2009 | Reply

    CARROLL

    You answered your own question since you want to reinvest in your business, however, if you wish to have salaries and bonuses I would suggest it be based on the contributing amount

  3. By JORDAN on Apr 11, 2009 | Reply

    ERROL

    It really depends on the business model, and how long it will take until you are profitable. If you begin to show profits early, then you should pay yourself something along the way if you NEED to. If you don’t need it, keep it in the company. Also, with you having put so much more than your partner, make sure that you guys have paperwork that defines EVERYTHING. If you agree to a 50/50 split, so be it. If you are the founder and the CEO, then YOU determine how much he gets paid. I assume you trust him or you wouldn’t have gone in to business with him. Make sure you don’t ***** him over in any way… Remember salaries are waaay different than profit money. I suggest a small salary if you need it, then quarterly profit checks. There are also some requirements for how much you HAVE to leave in the business.

    On a side note, I just opened up a business with a partner (C-corp) and we are only paying ourselves commission as we would any other salesperson or Manager until we can begin to take profit checks…

    Good luck and STAY FOCUSED!

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