^redacted‌ thank you for the tag. I am not an expert in profit sharing. However, I have found many small business owners hesitate to put them in place due to some of the on-going legal and reporting costs. But in general I think it is a great idea to keep strong talent if managed properly.

Yes. I bought an established hosiery mill in NC. There was no retirement plan in place so we established a 401(k) plan that has an employer match, plus an optional profit sharing contribution that I can choose to make if I want. This profit sharing piece is optional, even if there is profit. The 401(k) is definitely an administrative headache, but it's only a headache once a year when I have to prep information for the required 3rd party testing. Also, with two key employees I have set up separate phantom stock profit sharing agreements. This profit sharing is not optional. But it's only enacted if/when I take a distribution from the company (which I haven't done).