Also, there's a difference between hiring software engineers, who will be engaging in activities related to your core business, and hiring someone to clean.
If the owner does not, or is not able to build and maintain their software, some will consider this to not be a single person business (regardless of how the extra help is contracted).
I personally disagree with that analogy (I'd consider the hiring of any additional labor to deviate from a company's "one person" state, custodial personnel included). I also disagree that equity is the only consideration for similar reasons (if I own 100% of the equity, but run an office with a receptionist and service desk and programmers, that's very obviously not "single person").
