My husband and I started a publishing business in 2006. This last year we made a small profit. We want to keep investing the profit primarily back into the business, but as we grow, we'd like to take a small amount out. It won't be enough to be a regularly paid salary for at least another year. We are incorporated and we do not want to decrease our basis. Are there any other legal options? Bonuses? Can you pay bonuses if you are not paying salarys?

I'm sure other start-ups must have to deal with a similar situation.

Unless your state treats it differently, you should be able to pay yourself dividends, either monthly, quarterly, annually, or as the profits accumulate. You can also start with a salary that is below minimum wage, just to show income to the government.

Alternately, I believe you could pay commissions on a percentage basis as you receive the publishing orders. Set the percentage small to begin with, and raise them over time as the business grows and can afford to pay you. Commission is actually more reasonable as it will drop when business is slow and increase when business increases.

Dennis Bevers

Dennis,

Thanks so much for the ideas. The commission idea would fit us perfectly. I'll set that up right away.