Ask HN: The less than legal startup, a boot-strapper's advantage

The thought came to be when discussing a new business model. The realization that a boot-strapper can be non-compliment with things like employment regulation, business licenses, etc, in order to demonstrate a business concept. Then fix the problems only if the business model is viable. One caveat is this will only work if one can limit personal liability.

For clarification, I am not talking about fraud or ripping people off, however the avoidance of some red tape until a model is actually proven ($$ and people). If the model fails, the business gets slapped with a few fines and fees and dies. A existing business or one with large financial investment does not have this ability, therefore it is a boot-strapper's advantage.

I would like to open a discussion on this idea.