Sometimes a client will approach us wanting to discuss taking on a partner/shareholder for the extra cash they can bring in.
First I point out that if they are selling a portion of the business, they may have a capital gain issue on their hands. And two if the money is going to be retained by the business for the future they may still have a tax liability for the gain. The funds should be deposited by the individual and then loaned to the business with a note payable.
But that minority shareholder has rights. Especially the right to inspect all books and records, you as the majority owner own the minority owner good faith.
There are consequences for continuing to run the business exclusively for your own interests. You have to look forward to all owners best interests.
If you are considering taking on a minority owner, weigh your costs versus the benefits, before you make your final decision.