you can also incorporate before applying (if you're serious about the idea). Use services like LegalZoom, they cost around $300-$600.
In the event that you do get into YC, or raise 5-6 figures of seed money, you can always go to a lawyer and reissue stock certs, articles of incorporation, etc.
i suspect it's the free WiFis that require you to comply with their terms and conditions. They probably catch the traffic and inject text ads into the HTML, which arguably is quite clever and malicious.