Startup Funding Espresso – Steps to Shutting Down a Startup

Steps to Shutting Down a Startup Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several steps to shutting down a startup. Here's a list of key steps to follow: Pay what is owed to employees such as accrued vacation. Pay all providers such as contractors, software vendors, and others. Collect invoices from any outstanding accounts. Notify all customers, partners, and vendors about the shutdown. Sell or distribute any assets leftover such as furniture and equipment. If you cannot pay all providers you may need to consider filing bankruptcy. If you can pay all outstanding debts then you can proceed with dissolution of the entity. File your tax returns -- this includes federal and state and any state franchise taxes. Once taxes have been paid you can file a dissolution with the IRS. You'll need to report to the IRS any distributions made to investors. Dissolve the legal entity -- if you have a Delaware C Corporation then you'll need to file a Delaware certificate of dissolution. If you have an LLC then you'll need to file a dissolution of the LLC at the state level. Shutting down a startup is difficult but when done right can save future headaches. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.