He’s only referring to the proper naming of your group.
If you’re a team, call yourselves a team. There are many volunteer-based (some call it “Royalties”) teams that call themselves AwesomeName Studios, because it sounds more official but they haven’t ever incorporated. Even “AwesomeName Studios” is severely misleading because AwesomeName doesn’t have more than one physical studio (i.e. dedicated office space), and let’s face it, they’re probably all working remotely and don’t have a single studio.