That's exactly the kind of approach that inhibits entrepreneurship. It's very hard to see hurdles which kill non existent companies by preventing them from ever

That's exactly the kind of approach that inhibits entrepreneurship. It's very hard to see hurdles which kill non existent companies by preventing them from ever happening. There are big risky steps that happen before it feels real. The easier these steps are, the more likely it is that people take them. Red tape that would not be more than an annoyance to an existing company kills off new companies. Maybe to an individual with decades of entrepreneurship 10-20k for a lawyer to handle stuff and make decisions about things he doesn't understand is fine, but to an average joe thinking about starting a business that represents a year or more of savings.