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Employee is a legal term, were they really employees?

In a corporation, just about everyone is considered an employee of the company (in the legal sense), including major shareholders who do work at the company, as Jobs and Woz did. It's part of the protections provided by incorporation.

Yup, thats why you can take with a grain of salt when someone says something like "We'd like to pay you more, but startup just isn't profitable enough", that doesn't mean the owner isn't taking a nice salary away from the place.

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