An employee is going to be much more expensive to hire than a web development firm. This is because any good web developer is going to want a competitive benefits package on top of his/her salary.
Have you tried contacting a web development firm? Many times they will assign an account manager to you and you will have the opportunity to develop a close relationship to the account manager. As with anything, the more money you are willing to pay, the closer that relationship will become.
If you still want a young employee who is a go-getter, why not try a local college or university computer science program? The professors can steer you in the right direction to help you find a competent and conscientious developer. You might get lucky and be able to hire the person as an intern. That will probably be your best, and cheapest option.
You can also advertise the position on sites such as Monster.com, Careerbuilder.com and others. You may even want to try the classified section of your local newspaper.
In terms of compensation, that is something that you, your employee and your legal team will have to work out; especially if you are going to offer some sort of stock option plan. Don’t forget, if part of the employee’s compensation is going to be with stock options, he is taking on a very big risk and may demand more than you are willing to offer.