If you are a chief financial officer of a start up , is that an employee position ?
For a start-up that does not have cash to pay salary to an early stage employee , could it structure a convertible note in lieu of sweat equity ? And , what are the tax implications of this for the employee and for the company ? For example , if the market rate of this early stage employee is $ 120k then every month a convertible note of $ 10k can be issued to the employee . The convertible note will have the same terms as for the angel investors that are providing early stage financing at the same time .