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\u2019s 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.\xa0 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.\xa0\xa0 Once taxes have been paid you can file a dissolution with the IRS. You\u2019ll need to report to the IRS any distributions made to investors. Dissolve the legal entity -- if you have a Delaware C Corporation then you\u2019ll need to file a Delaware certificate of dissolution. If you have an LLC then you\u2019ll 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. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .