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Best suggestion? Find an existing team and join them for a year. Gain experienced mentors and develop a better understanding of what it takes to have a successful season.
If this isn't an option consider spending a year in VEX/FTC in order to drum up interest and sponsors as well as gain a more thorough understanding of what it takes to run a team.
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My friend is going to be senior and has done FRC for two years already: once on my team and last on a rookie team from another school in his area. This is not the first time he has tried to start a team at his school either. He actually did what you have suggested last year and has learned a lot from it.
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Good luck...You have no idea how crazy a ride you are in for
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That is what I told him when we started talking about this.
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OTOH, contact ChrisH to see who your best bets are to contact. Senior Mentor, Regional Director, closest team, all that sort of thing.
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I had completely forgotten about SCRRF. I should have remembered considering my dad/coach knows one of the members. I will definitely have my friend look into this.
I will ask my friend to talk to his school about using their workshop, however if his school is like mine (or any other school the Hart District) and does not have a workshop of any sort where else can we look for a work area.
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Insurance: If you can't go through the school (and do check what this covers), 4-H and other organizations can be helpful in this respect. Check out this thread for more information.
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This is something my team definitely needs to look into (we build out of my garage)
These suggestions and additional resources are great.

I will be sure to talk to my friend (and my own team) about these suggestions.
Thank you all for your great suggestions