article thumbnail

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Without receiving a real salary, I’d be wary of signing a non-compete in an area which I have domain expertise in. Lastly and most excitingly , it is very very easy in this structure to cause Company B to go bankrupt. The founder who owns 51% of Company B can elect to pay himself a salary of $1 USD. At what price?