Hello, new member here, I have a small machine shop and currently have just one employee working. I have been talking to him about bringing him in as a partner. A quick background; The business is a U.S. S Corp, started 3 years ago, has about $30K asset value, current gross revenue under $100K/year. I am purchasing a newer machine for $45K and it will enable 30% higher volume and I can take higher paying work with the newer machine. Our plans would be to expand with more machines over time, I would like to have borrowed money on only one machine at a time. My questions are: I would plan to form a new S Corp with a new generic name (the current Corp has my name in it). Would it be best to phase him in over a two or three year period just to make sure that he is really committed to the business? With the S Corp, should this be done with stock sales? My contribution would be the existing and newly purchased equipment. He will have no monetary contribution. I assume that my contribution would be paid back to me over the next few years? I would like a third voting partner; should I just give a couple percent of the shares to a dis-interested party such as a friend who also owns another machine shop and understands the business? Does a person have to hold stock to have a vote in company direction, or can we just agree on a person and put that in our corporate meeting notes? If we do a buyout rule for the stock shares, should it be first offered equally to other stockholders, given 90 days for a commitment to purchase, then up to a year to come up with the funds? If the other stockholders are not interested, then the stock could be offered to anyone? I appreciate any thoughts on these questions.