have some friends and relatives who will work for free to help me out,
doesn’t this solve my labor liability?
Answer: This is the quickest way to lose a friend or
permanently alienate a relative; it is also not a good business decision.
If others are working for free, then they should be given a portion
of the ownership (this is often called “sweat equity”).
Any such arrangement needs to be detailed, documented, and
formalized, because misunderstandings and differences in opinion are bound
to occur. The last thing a
fledging business needs is to be sued.
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