In this blog article, you will find out whether you as a founder have to pay a salary immediately after founding your company or whether it is also possible without paying a salary.
The legal situation regarding the payment of wages for founders
After founding an LLC or Ltd, the question often arises as to whether founders have to pay themselves a salary immediately. It is important to understand that these two types of company have their own legal personality and are therefore independent (legal) persons. There is only a right to a salary from the company if this has been contractually agreed, for example in an employment contract.
Particularly in the case of one-person companies, the question arises as to whether wages can be waived. This is in fact possible, as the relationship with the LLC or Ltd can be contractually autonomous, even if you are the sole owner.
Waiving wages and obligations towards the social security authorities
As a founder, you can do without a salary, but you should still fulfil certain obligations towards the social security authorities. Even if you do not pay a salary, you should register with the authorities and make minimum contributions for at least the 1st pillar (AHV/IV/EO). Otherwise there may be gaps in your OASI or disability pension.
Separation of assets between founder and LLC/Ltd
When founding an LLC or Ltd, it is important to ensure the separation of assets between the founder and the company. Although there is an economic identity between the two, in legal terms they are two strictly separate persons. This means that assets of the LLC or Ltd may not be withdrawn without a corresponding equivalent value. It is important to maintain this separation in order to avoid legal problems.
Precautionary measures for the payment of dividends
Caution must be exercised when paying out dividends, especially if the founder waives a high salary or no salary at all. There is a risk that the social security authorities will make an adjustment in order to avoid the evasion of tax payments. To avoid tax consequences, an appropriate salary must always be paid before dividends are paid out.
The importance of an appropriate salary before paying dividends
To avoid tax consequences, it is important to receive an appropriate salary before dividends are paid out. The social security office can make an adjustment if the salary is too low or not paid at all. By receiving an appropriate salary, potential tax problems can be avoided.
This article was translated from German with deepl.
