Any halfway decent developer should have a side project or two, so I would imagine it's a filter to see if you're actually at least semi-serious about what you're doing.

In the UK at the least, it is trivial to gain some level of incorporation (fill out an online form, pay £20, have an address). I assume the same is possible in the USA.

I agree but together with partners we have to decide on some requirements. Might definitely change it in next edition.

It's a hindrance for us but I understand why it's there. For starters, it weeds out vaporware rather quickly.