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> If you're doing work for financial compensation such as wages or equity then legally you're either an employee or a contractor.

Fair point. Apparently AirBnb petitioned the SEC to allow it to give equity to its hosts while still being a private company because that is currently illegal.

> However this structure makes it more difficult to attract capital from outside investors.

Another fair point. Outside investors seem to like to have 1 share = 1 vote, rather than 1 person = 1 vote, because then those with the most financial shares owned (typically investors) can have more decision-making power.

[0]: https://sites.law.berkeley.edu/sustainability-compliance/the...




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