Small-business owners may be selling themselves short

Amounts as low as under $100,000 - and even a salary of $75, 000 a year - and as high as 2 million have been contested by the IRS, says Paul Dorf, managing director of Compensation Resources Inc. in Upper Saddle River, N.J. Dorf estimates that 20 percent of his business is representing clients who have paid themselves excessive compensation.

"Many small-business owners fall flat on their face because they don't have any rationale behind what they pay themselves," says Dorf. "An adviser can help you keep records that can back up your decision."