By Cynthia E. Griffin
When it comes to money matters, homebased entrepreneurs constantly face tough decisions. Brad Snyder (right), founder of Strategic Advantage Inc., is a prime example. After much thought, he elected not to pay himself a salary. "[The money is] reinvested into the business, and on occasion, I still infuse some of my own money into it," says Snyder, who expects his management and technology consulting firm to break even this year.
While he decided not to take a salary, the 41-year-old did establish a Simplified Employee Pension (SEP) retirement mutual fund. This way, the Lee's Summit, Missouri, entrepreneur can withdraw payments from the business account--since Snyder's company is a subchapter S corporation, income is usually taxed at an individual rate. And while he anticipates profitability soon, maintaining that profitability may require further delaying his salary and outsourcing more. If so, it's a sacrifice Snyder is willing to make.