Piercing the Corporate Veil and Business Dissolutions

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The Startup Shutdown Playbook: How to Succeed in Closing a Company

Run the Numbers

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CHAPTER

Piercing the Corporate Veil and Business Dissolutions

This chapter explores the concept of 'piercing the corporate veil' and its implications for business owners, focusing on how corporate structures like LLCs protect personal assets. It also discusses the complexities of dissolving different business structures, particularly Delaware corporations and LLCs, emphasizing the need for understanding regulatory requirements. Additionally, the chapter addresses the importance of transparent communication between business leaders and investors when faced with financial challenges, particularly regarding company shutdowns.

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While few plan for the demise of their startup, it’s something that many face. In this episode, CJ is joined by Dori Yona, co-founder and CEO of SimpleClosure, to unpack the financial, legal, and emotional complexities of shutting down a company. Dori explains the options available when a company is running out of cash, what bankruptcy actually means, and the importance of budgeting for the end. The conversation covers acqui-hires, dissolution, returning capital to investors, hidden liabilities, legal pitfalls, tax implications, and more. Dori breaks down the differences between shutting down corporations versus LLCs and the timelines involved. They also discuss how to break the news to investors and why perseverance is sometimes overrated.

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@cjgustafson222 (CJ)

@DoriYona https://x.com/doriyona (Dori)

LINKS:

SimpleClosure: SimpleClosure.com

LinkedIn: https://www.linkedin.com/in/dori-yona-b8369877/

Email dori@simpleclosure.com

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TIMESTAMPS:

(00:00) Preview and Intro

(01:44) Sponsor – Tropic | NetSuite | RightRev

(05:32) The Inspiration Behind SimpleClosure