Actually it seems you're confused. You don't need a payroll system but you do need payroll done correctly by the company. There is no such thing as a "standard employeeship" - either you are an employee or you're not. Laws do not discriminate between a serious business or a sloppy startup that doesn't have it together.
You should really talk to an HR/tax attorney before you continue to spread misinformation.
You should really talk to an HR/tax attorney before you continue to spread misinformation.