Ask HN: Typical Startup or Abuse?
Over the past year I have been working for a local startup, in the United States, as the Jack-of-all-trades. We offer a product specialized to a fairly niche industry that is doing fairly well. In the past year we haven gone from 2 to 75 clients, gaining around 3 clients per week in the past two months. The product typically nets $5,000/yr per client. The product itself is web-based running off of an opensource CMS.

For the first 10 months I was the only person in the office doing work ~9 hours a day. From client setup, to design, to code and deployment I did it all. Twice a week I would be joined by the other 3 part-time guys who would do what they could in their 4 hours they had. Besides myself and the other team members the founder would do sales two to three days a week part time. Now a year in we have eight full time team members (5 Dev, 1 Sales, 1 CS). My role in the company has now taken on the Jack-Of-All-Trades plus the management of these other team members. Which I consider to be a great accomplishment for myself and I am proud of. However one factor in all of this has not changed in the past twelve months: compensation.

I was never a fussy person about money, especially when it came to startups. (I was in two other startups prior to this one.) I understand that you must bootstrap and try to be as frugal and agile as possible in the start. However a year in, and I am still making around $500/week. Which, in the beginning was great. However over the past year I have moved out, bought a car (out of need, the other died), gotten married, and have had a child. (With a second one on the way.) The other two major factors are: no benefits, and the founder seems to refuse to officially employ me (or anyone else in the company.). He still gives all of us a 1099. Yet, he treats us like employees. We have required working times, usually 8AM - 6PM, we only get a half hour lunch with no other breaks, and are on-call 24-7. Honestly, those items don't even bother me that much. However what does is that if I am one minute late from my 30 minute lunch, the founder will immediately call me asking where I am. If I happen to arrive at work a minute or two late I get a lecture. If I don't answer a call, on a weekend, I get a talk about availability. And if I am sick, I am required to work from home for the day. (I was in the hospital and still required to work.) That is what really gets me upset about this situation. I am fairly sure what he is doing is illegal with the 1099 issue. But it really upsets me that for all of the work and dedication that I have put in, that I can't get cut a break once or twice.

I am unsure how many of you are in a similar situation or even care. I honestly am not looking for any sympathy on this however I am seeking advice. Two weeks ago a new-hire and I went out for lunch and he asked me about the 1099 situation and asked what he should do. I told him to take some of the money out of his check to save for taxes. He said something to the degree of "But I only make $500/week!". I am not exactly sure why that made me lose my cool. Ever since then I have felt that the founder has not only been using me, but also the rest of the team. And I am letting this issue get to me. I spend each day now hating what I am doing because I have this feeling. I know the easiest answer may be: Well why not just talk to the founder? And I have.

The response is always the same: "We can't do that right now."(Benefits/Employ) "Remember I haven't even paid myself yet for any of this!"(Compensation) "It's cheaper for you if we do it this way!" (1099) And he won't budge.

I have been doing web work since I was nine. This is my passion in life. I spend all the time I can perfecting my craft and trying the best I can to stay current. I've never cared about money in the past, but the time has come where I have to. I hate myself for letting this job get to me to the point where it makes me burnt out on my passion.

This leaves me in the position of asking myself what to do now. My gut, and my wife, is telling me to begin looking for other jobs. Any advice?
(And thank you for taking the time to read this over, I deeply appreciate it.)