[gruuk]

Shouldn't it be "Hiring Employee #2" instead? When starting a business, you should always pay employee #1 (yourself) even if it is a small amount at first. Many businesses fail because the founders forgot this simple yet essential step.

[ahoyhere]

Perhaps, but in every sense -- legally, tax-ably, and accounting-ly -- a founder is not an employee.

[einhverfr]

Depends on the business structure, right?

If it is a corporate form, then the first person you hire is likely to be either an employee if the founder is (in the sense of an officer) or not (in the sense of an officer).