You may be breaking the same law, but you're probably breaking half a dozen other laws at the same time (zoning, etc) and this one seems no more likely to affect you.
I suspect that corporate lawyers are mistakenly worried about irrelevant laws being broken, but I don't know if that's the case here: 100-person startups formed over a weekend face unique legal challenges.
IANAL, but IIRC, once you have over a certain number of shareholders (and it's somewhere in that neighborhood), you are effectively a public company. Which means you get screwed by SarbOx.
(And you've already had your "IPO", so there goes even more money).
I suspect that corporate lawyers are mistakenly worried about irrelevant laws being broken, but I don't know if that's the case here: 100-person startups formed over a weekend face unique legal challenges.