Work from home 100% of the time.

It gets a little hairy in the summertime, what with the kids home from school and the wife not working....But we somehow slog through.

When we need to hold meetings, we have a Teamspeak server that we all use. I go to the office maybe 2 or 3 times a year. One or two of those times is to interview potential new hires, and the other time is the annual company meeting where they buy us lunch.

It's a nice life if you can get it. The biggest problem is that it makes Agile development methodologies hard -- and damn near impossible if nobody else has experience with them before starting.