My husband and I have an LLC for our work doing small engine repair. Occasionally our son helps a little, but otherwise it's just us.
My husband has a close friend and former co-worker who is losing their job, and we are very busy and could use help, but we are deeply morally opposed to profiting from someone else's labor. I was thinking that perhaps we could subcontract stuff to her for a little bit, and if things are working out, then we figure out how to restructure the business.*
There is a restaurant in a nearby town that is worker-owned, but I haven't asked there for advice partly because their structure is byzantine, and idk if that comparison is apples-to-oranges because of the wildly different industries.
*
I understand that sharing ownership means sharing control. I would have qualms about that with pretty much every person I know because most people aren't as obsessed with details and informed decision-making etc as I am; I am not concerned about that with this friend, because she has the same flavor of AuDHD as I do. I was undiagnosed when we met her, and our striking similarities in personalities and behaviors were a huge part of the reasons for seeking diagnosis.
Also, it's a rural area, everybody knows everybody, and she is someone with deep roots who is pretty universally loved and respected. There are few people I would trust to try to step into my life and fill in for me if I were seriously injured, but I know she would give everything as much or more care than I do. She is the best.
The process of legally converting a business to an employee-owned cooperative can vary significantly depending on what jurisdiction you're in. There's different criteria for creating one (some places might require more than 3 directors to create a Coop) and all sorts of statutory considerations unique to wherever you are.
If you're serious about doing this, I would sincerely recommend reaching out for legal advice first. This is your livelihood, and you do not want to make a mistake that creates difficulty down the line. Depending on where you live, there may be a public interest organization, or business law clinic, that can provide some legal information for free. You could look up "(where you live) non profit legal assistance" and see if anything shows up.