To add some details actually; we were concerned about three major points:

1. The project would deal with user's data to some degree

2. The project was going to "annoy" an existing, much larger, project who would have likely tried to take some legal action to keep their "place at the top"

3. The project was going to both a) need to generate funds (and pay core developers), and b) be guaranteed to generate funds, based on our experience. However, we did not want to register a company as not having a company complicate things was one of the central goals of the split from the larger project. Try paying people a couple hundred bucks (less than minimum wage, more like Aufwandsentschaedigung) without having to jump through various hoops and without doing it illegally.