The authors arguments simply don't hold water IMO. He notes how incorporating became expensive due to an unexpected need to offer a stock purchase plan. Is he saying that incorporating forced him to offer an options plan? Its my understanding that such programs are entirely optional.

His point about finding an expensive lawyer to "build a relationship" for making introductions is equally puzzling. He might have found that such lawyer wasn't worth the investment, but that's not a reason for a startup to not incorporate.

For me, liability protection is extremely valuable. If you have no assets, perhaps the liability protection isn't worth it.