I’m currently working on my MVP with my other co-founders and the assumption is that I would quite my job once we receive our seed round. I’m not sure what the salary amount would be in respective of our burn and even reaching a series A.
My current role is senior eng making low 6 figures given the state of the market.
Our assumption is our seed would be around 3~5 mill and I would be taking the CTO role.
I’m trying to figure out what would be the appropriate salary and the opportunity cost of quitting my full time job?
Ideally you shouldn’t have a salary, if your goal is to make your company as profitable as possible.
Pay yourself of course through an LLC, I say keep it low enough that you can pay your bills and sink the rest of the capital into the business.
Otherwise you’re just using that seed money to employ yourself. Which can psychologically cause you to get lazy and not give as much effort
I could be wrong ofc but it’s good to at least consider.
You are wrong.
You can’t raise venture capital through an llc.
Llcs are great if you are bootstrapping, want to have pass through taxation, and have personal business expenses to deduct.
Do not - repeat, do not - use an LLC if you intend to raise venture capital. I can’t understand why this myth is so persistent. If you don’t get it right from the beginning (Delaware C corp), you’re going to have to change it later, and that will be a lot more difficult than just doing it right in the first place.