My question is simple/straight forward (i hope). You may assume the business is for-profit, but I would love to know what the rules are for non-profit.

Here is a scenario just to give some layout/background:

Say Adam has created a business as an LLC (assumes USA). Say he has friends or family Eve and Noah who can help with the business. As the business is not yet earning money/profit, (and maybe never earns money/profit if it is eventually deemed a failed venture), he cannot pay them. Eve and Noah, (ideally) do not want to become 'members' as this may place in them the complications of managing and maintaining the LLC business documents of which they don't have the interest. They are willing to work for no pay until such a time the the business is making enough money/profit that they can be compensated as employees. Adam wants to know if this is legally possible and how he (Adam), Eve and Noah can come to a formal agreement or procedure to accomplish the same. Or whether Eve and Noad 'must' become members for them to work on the business without pay.

You can say that Noah and Eve are donation their 'time' and 'skills' instead of 'money'.

  • 1
    The most immediate issue is that $0/hour is less than the minimum wage. – Nate Eldredge Feb 18 at 3:13
  • Some employees are classified as "exempt". It literately means exempt from overtime and minimum wage laws. So are Eve and Noah doing professional, managerial jobs? – George White Feb 18 at 4:54
  • I was interested in the context that Eve and Noah were mostly some form of software developers. But given that it is a startup they may participate in other activities such as sales and communications,. They are professionals in the colloquial sense, but you may be asking in a different context. They are not managers by definitions. – Kris Matrix Feb 18 at 5:08
  • It's called an "internship." – ohwilleke Feb 20 at 0:35

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