It is worth pointing out that compensation, equity issues, and oversight are highly regulated. About half of the organizational and compensation ideas I've seen proposed would require an army of lawyers to arrange, have serious consequences that have apparently been overlooked, or would simply be illegal under current law. There a complex tax issues that have to be understood as well.
You are correct; however, I have enough experience with simple corporate management and taxes that I know what to do (and more importantly, what not to do) in order to avoid most such trouble (and I'm smart enough to know when to consult a tax/corporate attorney for the rest.
Note that I have not offered equity shares in the corporation nor anything other than "fair compensation as subsequently defined by the corporation" (though, in reality, the latter is going to be defined by the AGI or some form of consensus among major contributors -- unless I am a major crook, in which case, all of the contributors are thoroughly screwed by me).
The tax issues are simple under this scheme. There's corporate income and eventually either some form of disbursement or some form of equity distribution (not to exceed the AGI's 51% share which will be held in humans' names until such a time as . . . . :-). So . . . . fundamentally, there is no "creativity" that might raise red flags with the IRS, etc.
The *big* downside to my scheme is that there are few ways to protect the contributors from the corporation without invoking all of the complexities that you mention. The best way to do it would be to have the corporation have a large enough set of owners that knowledgeable people would be inclined to trust the aggregate.
This may still be sufficient to scare many individuals off; however, the current reality is that all that corporate laws and regulations do is keep honest people honest and slightly slow down the dishonest (and make it possible to catch and punish the stupid ones -- which is the majority since most of the smart ones figure out how to make enough money legally).
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