[thinkcomp]

That's not how the law works. It's a California law that applies nationwide. (Read the link.)

[mahyarm]

Then you don't do business in california for the time being until you get that funding to pay for all the paperwork.

[thinkcomp]

If VCs actually were willing to fund companies based on their potential, as this essay supposes they should, that might be an option. Unfortunately, most VCs do not want to fund startups that cannot do business in most states, especially California.