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Paying self in early days of Corp

    • 1 posts
    July 24, 2013 4:05 PM EDT

    I have been running a Delaware Corporation for about 2 years.  We're now at the point where we have a small amount of income.  It's been a good long time since I've had a paycheck, and "employee-#1" who has been working for sweat-equity has quit his dayjob to devote more time to the company.

    I would like to be able to pay myself and the other member of the company, a small amount of money at the end of each month (based on what's available) to help us persist a bit longer, prior to being able to pay full salaries.

    What are the options & what is the accounting involved?

    Are we able to pay small dividends at the end of a month/quarter and just declare that as... income? cap-gains?
    Or, alternatively is the company required to go with full-blown payroll processing even for small variable-size disbursements... (in which case the fees would be larger than the amount we want to pay out, therefore not worth it).

    Thanks for any info you can give!