Your completely right, the complexity is a much larger threat than the actual amount paid out. Ideally, and this would help immensely, a grace period would include no taxes of any kind paid out for a set amount of time, and no tax complexities to deal with in the set time. We report our numbers on a special tax form and that's it. No tax consultants needed. This would ensure that a larger number of start ups make it to a point where they are large enough to A) hire more people and B)deal with tax complexities without them being a drain on a company's chance of success. If this was possible I would bet that the chances of start ups surviving passed infancy would rise dramatically.