> He's spent a lot of time on all the formalities of setting up a company and following all possibly relevant regulations, no matter how costly This is common

> He's spent a lot of time on all the formalities of setting up a company and following all possibly relevant regulations, no matter how costly This is common mistake most first time entrepreneur do. I did the same in my first go around. Focusing on company formation and things that don't directly impact product or customer. But next time I wisened up and waited until a customer sent us a $2,000 check as advance payment. "Hey someone sent us a check to a company that doesn't exist. We need to deposit it in a bank account. I guess we need to setup a company for bank account." Keep in touch with your friend even if you don't want to get involved right now (though it is a learning opportunity). Dedicated people like your friend are hard to come by and typically figure out and succeed if not this time, maybe in next go around.