That's a great question. One interesting bit on the job application page:
> We offer standard startup benefits, including equity in YC. As a member of YC, you'll also have opportunities to get to know a lot of the best people in the startup world.
But no mention of a salary. In this particular case I'll make an exception to the rule that you should value your stock at $0.
"Ordinarily a startup should be a C corp. It's cheaper to be an LLC, but if you plan to succeed, you may as well do things right from the start.
With an LLC profits don't get taxed twice like in a regular corporation. So it makes sense to be an LLC if you expect to have substantial profits, but don't expect to grant options, sell shares, or get bought. Consulting firms and law partnerships are often LLCs. YC is an LLC."
The valuation of a company is a reflection of the value of the underlying assets. In the case of YC that is the sum of the value of all the companies YC holds stock in plus intangibles such as the value of the YC brand.
But shares in law partnerships aren't worthless. Presumably YC pays its profits (when its portfolio companies have exit events) out to shareholders, so its shares are worth the future value of those profits.
Everybody says that. Without actual numbers, this is the some as all the other job listings that people rail about where you go through N levels of interviews to find out they want to pay you half a grilled cheese sandwich per day.
Sam has mentioned before that partners have a sliding scale from minimum wage to $300k, with significantly more and less equity, respectively. Most people choose the lowest salary (of course most of those people are already independently wealthy).
> We offer standard startup benefits, including equity in YC. As a member of YC, you'll also have opportunities to get to know a lot of the best people in the startup world.
But no mention of a salary. In this particular case I'll make an exception to the rule that you should value your stock at $0.