Payback clause for incubator?

First time posting. I got accepted onto an idea-stage incubator with an app concept I'm working on. The package includes setting up a limited liability company with a 93/7 split in equity.

There's a clause in the agreement that says I must work diligently on the product for three years, or be liable to pay back the full amount of the funding I received from the incubator.

This is concerning to me because my understanding (bear in mind I'm new to VC and have only had businesses funded by bank loans or bootstrapping) was that in VC, if the idea fails, the founder's investment is gone.

Of course my plan IS to work diligently on the product, but is this a normal clause? I feel lucky to have been offered any funding in this climate and at this stage of development, and I'm not sure if I'm mistaken in my understanding. Worried that I am locking myself into working on this for three years no matter what happens in the market. Any advice is appreciated.

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International student forming an LLC so she can use her opt for it

This is kind of a niche issue and I hope I'm in the right place for asking this question…..if not, could you point me to the right place before deleting this?

My partner just graduated from grad school and she wants to form an LLC to use her OPT. We live in New York right now but don't intend to stay here long term. She has consulted with different immegration attornies and CPAs to see what makes the most sense. Right now we are getting 2 voices:

1) she can form the single member LLC in another state (we are targeting California) and register a business license in new york. For tax, she only needs to pay income tax (federal and New York state) and LLC tax for California. To register biz license, she only needs to go to the corresponding place in our city. Then everything is good

2) another person said she needs to do some publishing on newspaper in order to form LLC. This person recommends doing it in Albany, NY and said she has to register the LLC in New York state instead of California in order to do the publishing. She then has to register business in both states (California as foreign LLC) and pay for fees in both states

It seems to us that the information is a little conflicting. One says we can register in California and register business license in the city here in New York. The other says we can't because we need to publish on local newspaper. One says we only need to pay income tax for the state we operate and LLC tax for the state we register. The other says we HAVE to do the LLC in the state we live in. I'm confused. Which is which? Who is right? What are we supposed to do to achieve our goal?

Edit: 1 is from a CPA and 2 is from an attorney

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