Less than $5k revenue to company thus far, but about $16k in business expense on my part. How do I bring these 2 people into the business? If they are shareholders and providing work for the company are they automatically employees of the company? Also, if I give them their shares now, will they be entitled to a representative portion of the s corp loss for tax purposes? Obviously, I would like to retain that for myself, since it was my investment.
I know I need legal representation for this, but is there a resource that you recommend to educate me on how s corps work and function and the IRS/employee ramifications of adding shareholders? I want to be at least knowledgeable about things when I go into talk to atty - I don't want to have to pay him to provide me basics. :)
Thanks