In our startup practice, we see a number of common mistakes entrepreneurs make as they establish and grow their companies. Not surprisingly, many of these are made in the course of compensating employees and other service providers, which is a key area of activity early in a company’s life cycle.
Compensation-related pitfalls can be easily avoided if you know what to look out for. Once made, though, these five mistakes can put your company in a thorny legal predicament that can be difficult and costly to resolve.
Wage Deferral. One of the most common mistakes an early-stage startup makes is deferring founder wages and other compensation to save costs prior to raising a financing round. Unfortunately, this can lead to significant legal and tax liability.
To read the full, original article click on this link: Five compensation-related mistakes startups make (and should avoid) | VentureBeat
Author: Caine Moss
