I have been developing a game for 3 years now. And recently, a friend has joined me to work on the game with me. By next year, we plan to bring along an artist and musician to help us finish the game.
Currently, we are planning on dividing the company where I own 70% and my friend owns 30%. We are looking into forming an LLC. When we do get an artist and a musician, we won't have the money to pay them. We are hoping to give them 5-10% of the company each depending on how involved they will be in the project. So the approach I am taking is to cut the pie equally amongst 4 members based on the amount of value they bring to the project. Is this a good approach? Is this even possible with an LLC? Should we be forming an S Corp instead and then allocating shares accordingly? Are there any other approaches that are better suited for what we want?