Have you considered offering the employee a profit sharing arrangement instead? That would keep your S-Corp administration simpler and save you a lot of paperwo

Have you considered offering the employee a profit sharing arrangement instead? That would keep your S-Corp administration simpler and save you a lot of paperwork. I run a small SaaS myself, and would never consider adding a shareholder unless it was tremendously beneficial to the company. If you already had other shareholders, I might understand giving some stock away on a less than ideal basis. But not when you have 100%.