The association you're in is a corporation, if the majority of the shareholders (owners) are owner-occupants, they're going to do a lot of things you as an investor don't want to see happening, and there's usually not much you can do about it. 

Equity financing could be the founder's (of the company) money tied up in the business venture, venture capital firm, shareholders, etc all in exchange for a share of the profit so there's a loss of potential earning power.  

The shareholders of the drainage, and then of course the Colorado Division of water resources.

His Berkshire Hathaway Annual Shareholders Letters, that are available to public for free, are the best MBA education that you can get. 

@David Dachtera the passive income rules apply to member/shareholders of the entity unless the entity is a C-Corp. 

If you purchase the property as tenants in common, then either of you can sell or pass-on your interest independent of the other - unless you have an operation/shareholder/partner agreement which spells out that the other party has first opportunity to purchase the holding of the other should they want to sell.You are headed in the correct direction that you should have an operating/partnership agreement between you and your sister ... it's worth spending a few hundred with an attorney to have one drawn-up and executed.

Not to mention the reputation the shareholders will get when "they screwed their staff".

There are no taxes or penalties for making this investment, and the shareholder capital can be used for any legitimate business expense including startup, your salary, inventory, etc.The business will operate as a taxable business, but any dividends issued to shareholders will be tax-sheltered to the retirement plan.This is not a simple or low cost structure, but can be a valid method of capitalizing your new business.  

As I've said, other aggregation sites have been served cease-and-desist orders, so for the sake of your shareholders you need to be very sure about what you're doing.But I do 100% agree with you that more transparency is necessary for crowdfunding to gain mainstream acceptance.  

They are all shareholders and encouraged to experience what our investors do if they have the ability to do so.