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Basic Startup Shutdown Guide

An overview of the process to shut down a Delaware startup with limited assets and liabilities.

Shutdown Guide

Access a complimentary checklist of shutdown activities, a template distribution waterfall, and template dissolution documents.

Basic Startup Shutdown Guide Screenshot.png

Who This Guide Is For

This guide is intended for founders of early-stage startups that are dissolving and:

  • Incorporated as a Delaware C-corporation

  • Have no material assets at the time they’re shutting down

  • Have few or zero creditors or liabilities at the time they’re shutting down

  • Have positive relationships with all outstanding stakeholders
     

The process for a basic shutdown that fits all of these criteria can often (though not always) be relatively straightforward.

Who This Guide Is Not For

Any startup that is shutting down and has:

  • A large number of creditors and/or investors

  • An inability to meet tax and/or employee liabilities

  • Complicated or sensitive creditor and/or investor relationships

  • Potentially stale liabilities

  • Different tiers or priorities of liabilities (e.g., secured or senior creditors)

  • Material assets that need to be sold or liquidated

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