It would, unfortunately, not work. The IRS has a great deal of experience with this, with almost no limits on their power, and they often redefine fake or even real structures intended to avoid taxes or penalties. In this case, they would define the operation as a single business. I've been under their microscope, several times, and I would not take that risk.
I'm sorry to hear that.
But I've heard it suggested that, as a rule of thumb, any law needs 95% voluntary compliance to be workable, because the govt can't handle the numbers they would have to prosecute, if more that 5% were resisting by some means.
I'd like to hope, at least, that small businesses that have a workforce of less than 50, could somehow grow and yet keep themselves under the magic number for years and years by some stratagem. Independent contractors, outsourcing of some sort.
Surely if enough small firms tried it, they could make enforcement exceedingly complicated?