We were recently visiting one of our largest clients down in New Orleans. We had a chance to meet with their founder and CEO who also happens to be very involved in the startup scene down there.
He gave us some advice - that we should be paying ourselves proper salaries. More along the lines of $1m/year each. While we’re scaling very quickly, we currently can’t afford to actually pay those out. So he said we should be setting them up as a personal loan to the business. He said he wished he did this sooner with his company as eventually the business does need to pay them back.
I really like the idea, but as I’ve looked around I haven’t found much information about this. Has anyone heard of this or done something similar? If so, definitely curious to hear about any sort of tax ramifications you ran into!