Ask HN: How Does Pre-funding Compensation Work for Startups?

1 points by gbachik ↗ HN
So I've heard over and over again that wage deferral is bad and can lead to legal problems down the line. Assuming this isn't an option what is?

Example: Me and two friends want to start a startup. None of us have any stable income. We all pitch in and register a C corp or LLC. We build an amazing product. Unfortunately there's a falling out and one of the founders quits... Then what?

We obviously can't pay ourselves before funding or profit since we have no money. Can that founder come back and claim wage violation or?

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