If a Startup Sinks, Founders Go Down With It

In today’s Startup Therapy Podcast, Wil and Ryan discuss what will happen to the founder when the Startup company goes down. When a company starts to wind down, you might be shocked how everything maps back to the founder, from office leases to subscriptions, and now all of a sudden these company liabilities become your personal liabilities. How can you avoid this from happening to you?

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 02:50 You’re stuck with the liabilities
• 08:27 Who pays the wind-down entity?
• 10:58 Filing for personal bankruptcy
• 14:14 Everything maps back to you
• 16:48 Adding more liabilities
• 19:37 Creditors will follow you 
• 21:18 Can you sign under the company’s name?
• 23:59 How safe are you inside the corporate veil?
• 28:52 Buying the good stuff only 
• 32:15 Typical timeframe for winding down a company
• 33:42 The personal liability is the scariest part
• 36:32 Be mindful of what you sign and don’t keep adding liabilities
• 38:09 Treat those liabilities as your own
• 40:05 You can renegotiate
• 41:36 No long term agreements