As someone who's managed the shuttering of multiple businesses, it's a headache and a half, especially because a dying business is exactly the situation where administrative needs have been...
As someone who's managed the shuttering of multiple businesses, it's a headache and a half, especially because a dying business is exactly the situation where administrative needs have been neglected. There's a good reason to have a business that specializes in closing businesses. It's a specialty need, and few people get the skill set needed to handle it.
As someone who's never thought about this before, what happens if you just... don't do any of that, and just lay everyone off and silently stop doing whatever your business does? I assume there...
As someone who's never thought about this before, what happens if you just... don't do any of that, and just lay everyone off and silently stop doing whatever your business does? I assume there are good reasons for a shutdown to be an actual administrative action that you explicitly do, but I don't know what those reasons are.
There's a few: Payroll: even if you lay everyone off, there's a legal obligation to keep filling quarterly payroll reports with the state until you close the business, on penalty of financial...
There's a few:
Payroll: even if you lay everyone off, there's a legal obligation to keep filling quarterly payroll reports with the state until you close the business, on penalty of financial penalties.
Tax filings: there's often a minimum annual fee for incorporated entities in a state. Failure to file taxes comes with penalties. If you aren't current on your taxes, you can't close the business. If you can't close the business, you have to keep filling paperwork. If you don't have the cash to pay the back taxes, you can't get current on your tax returns to close the business.
These penalties stack up, and the state will hound you for them. These costs can be thousands or tens of thousands of dollars, at a moment when the business has little to no cash.
It can be an awful trap at the moment that someone is already struggling with the closure of a business.
And that's setting aside the fact that most of the startups never have the admin support they need. They often aren't set up for success, really. They're supposed to just churn minimum viable products so that the good ones can be bought up, but the corporate infrastructure is rarely what anyone cares about.
As someone who's managed the shuttering of multiple businesses, it's a headache and a half, especially because a dying business is exactly the situation where administrative needs have been neglected. There's a good reason to have a business that specializes in closing businesses. It's a specialty need, and few people get the skill set needed to handle it.
As someone who's never thought about this before, what happens if you just... don't do any of that, and just lay everyone off and silently stop doing whatever your business does? I assume there are good reasons for a shutdown to be an actual administrative action that you explicitly do, but I don't know what those reasons are.
There's a few:
These penalties stack up, and the state will hound you for them. These costs can be thousands or tens of thousands of dollars, at a moment when the business has little to no cash.
It can be an awful trap at the moment that someone is already struggling with the closure of a business.
And that's setting aside the fact that most of the startups never have the admin support they need. They often aren't set up for success, really. They're supposed to just churn minimum viable products so that the good ones can be bought up, but the corporate infrastructure is rarely what anyone cares about.