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by URSpider94 6150 days ago
One good case for paying a fair salary to yourself as a founder is when all of the founders are not participants in the day-to-day operation of the business. If one of the founders is a "silent partner," for example someone who helped hatch the original concept but only comes in a few days a month to help out, then the operating partners can effectively increase their ownership share of the company over time by paying themselves for their management work.

If cash flow is a problem, then all or part of the salary could be deferred. In the event that the company becomes profitable, or is sold, then those IOU's become payable before the shareholders get dividends or a payout.

This is perhaps not the most efficient path for the company as a whole, and if all founders are working side-by-side, then it all comes out in the wash.