Shared Worst Business Advice In Spark Minute Video At Women 2.0 Founder Friday

Anastasia Ashman interviewed by David Spark at Women 2.0 Founder Friday, Google headquarters, San FranciscoHappy to contribute to this Spark Minute video taken at Women 2.0's Founder Friday at Google headquarters in San Francisco where producer David Spark asked attendees, "What’s the worst business advice you’ve ever received?"

My answer: "Incorporate in Wyoming."

 

Why's that bad advice for a new entrepreneur?

Because however well-meaning and forward-looking and clever the suggestion may be, it practically precludes getting investment if you're operating, like I am, in California.

It's just too avant garde. Out of the ordinary.

Investors aren't going to do extra legwork to educate themselves on the rule of law in a state they're not familiar with.

Faced with an unknown entity, investors (and other people you want to work with) will simply pass.

For whatever special benefits you might reap incorporating in Wyoming (less complex filing with the least administration costs, taxes, and state oversight were the main reasons), you make your enterprise too much of a puzzle for just about everyone else you hope to deal with. That's a hidden cost of being unconventional.

Thanks to David Raynor of Accelerate Legal for putting this into perspective for me at the reception of Catapult 2013, a conference about 21st legal career tools where we both were speakers.