I know this might be a bit narrow for a question, but I can also see other start ups working on this scenario it self.
We have X amount of money currently sitting in the bank. We just received it from our investor. We are a team of 2 and we have set up an agreement. I will leave my job and work on the new start up full time. He will stay at work, same hours and work on the start up in his hobby time. I will be using the money in the bank, while he will stay with his personal finances. I think this is all well and we have not had any problems with this agreement yet.
But here is the situation, We have about 8 months worth of runway to get this start up off the ground. I figured the best way to manage this money was to get a copy of quickbooks and just work on the money side of things once a week or so. But since all the money is helping pay for my expenses while I am not working. How does this get handled both tax wise for the company and for me when I use it to pay my self a small salary?
I know we should pursue an accountant, and I have one in mind when we start bringing in the money, but I don't want to spend money on outside sources just yet. I feel, that we should just go 8 months on the money and keep up with the book keeping during that time. At the end of the 8 months, I hope to have enough money to start using an accountant, but I just want to know what my future might look like as far as money is concerned with taxes.