"Do not obsess over tax and legal until you are at least marginally successful" is a perfectly reasonable approach for a traditional US startup that borrows (us

"Do not obsess over tax and legal until you are at least marginally successful" is a perfectly reasonable approach for a traditional US startup that borrows (usually more than once) to build the product, get users and eventually reach the profitability. In this mode, startups are most likely to fail by not building the product that can be monetized and grown to profitability. This is what they should focus on. Once a company is profitable, early missteps in tax and legal can be corrected with money, and usually not that much money. But for anyone building a lifestyle business, starting with a wrong legal or tax framework is much more likely to be a major pain and potentially doom the business altogether. My 2c.