Would my legal entity structure need to change for me to sell to my employees?

Whether your legal entity would need to change in order to perform an EO transaction depends on many factors, such as

1. your current legal structure,
2. whether you intend to utilize a 1042 rollover (requiring a C corp),
3. a simple and cost effective structure (such as an LLC), or
4. wish to bypass corporate income tax (available to 100% ESOP S Corps). It's important to note that if you do elect to become a C corp for the sake of a 1042 rollover, and then seek income tax exemption with an S corp, that there is a minimum 5 year waiting period before the company can become an S corp.