Not really true. Plenty of friends and relatives of small businesses.....S corps.....donate their time to help out the principal shareholders. They don't have to be compensated.....it's not required.
If the person has been hired as an employee, then there are laws in effect.....wage and hour.....but that's about it. The IRS doesn't really care if someone wants to volunteer their time unless they're a shareholder or employee of the corp.
