Frankly, it sounds as though this is a very small operation, right? Where if your employer stops doing his job, and you stop doing your job, the whole thing might go under, is that correct? He isn't hitting on you personally, or listen to his sexual activities or posting the hostile material around all over where you are forced to look at it. I am assuming you are also a male.
Whether you file a complaint or not, it sounds as though your employer is a few steps away from stepping off the edge of the world here. If this happens, will the company close?, what will be your chances of finding a new job? If there are more than three employees, and he does pay in unemployment taxes so that he is a covered employer, you'll have a short interval of unemployment insurance to draw while seeking other jobs. But the instant he gets a complaint, they're going to ask if there was any effort made by you to solve the problem internally before you have filed the complaint. And he can always say he was unaware you were having any problem with what was going on. So I suggest that you have a serious conversation with your employer. Not necessarily to quit, because I do not think that would solve anything and I could just about predict he won't be willing to give you a severance package if you do so, and your chances of being approved for unemployment would not be very good either.

