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B2Bfounders winding down failed or pivoting startups

Close Your Startup Cleanly

The bankruptcy route costs $200K+. ABC costs $75K-$150K. A managed wind-down — done right — costs a fraction of both. We handle the legal filings, creditor sequencing, employee obligations, and asset monetization. Flat fee. 90 days.

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Transparent pricing
$75K+
typical cost of an ABC (Assignment for Benefit of Creditors) for an insolvent startup shutdown
Ravix Group / SimpleClosure
$200K+
typical cost of Chapter 7 bankruptcy shutdown (most expensive closure option)
Ravix Group
December 31
Delaware annual deadline — miss it by one day and you owe another full year of franchise taxes
SimpleClosure Wind-Down Guide
The Problem

Does this sound familiar?

The decision is made. Now you need to close the company without creating personal liability, stiffing employees, or getting a call from a sheriff two years later. Most founders try to DIY the wind-down and either (a) miss the December 31 Delaware franchise tax deadline and get hit with another full year of taxes, (b) mishandle creditor priority and expose themselves to personal liability, or (c) fumble the employee final paychecks and COBRA notices and get a DOL complaint. Law firms charge $400/hour and months of calendar time. ABCs run $75K-$150K. Bankruptcy starts at $200K. You need a third path.

Miss December 31 and you owe another full year

Delaware franchise tax is the single most expensive missed deadline in startup wind-down. File the Certificate of Dissolution on January 2 instead of December 31 and you owe the entire next year's franchise tax plus filing obligations. Most DIY founders don't know this until their CPA tells them in Q1.

Personal liability is real and often misunderstood

Personal guarantees (Brex, Ramp, office lease) survive dissolution. Unpaid payroll taxes can make the founder personally liable. Distributions-while-insolvent can pierce the corporate veil. A clean wind-down isn't just paperwork — it's liability protection.

Employees must be paid first, and there's a right order

Employees before creditors before investors. Back wages, PTO payouts, final paychecks within state-specified windows, COBRA notices within 14 days, 90-day stock option exercise notifications. Screw the sequence and you're looking at DOL complaints and class-action exposure.

Employees are sacred. They are the number one recipient of everything. Pay off employees first, including back wages, vacation pay, before everything else. Then you can get into paying off creditors and debt holders.

Startup shutdown counsel via Silicon Valley Bank, Startup Shutdown: What happens when a startup fails
The Solution

Startup Shutdown and Wind-Down Service

A flat-fee managed wind-down service that handles the full shutdown: board resolutions, Certificate of Dissolution in Delaware (or your state), creditor notifications in proper priority, employee obligations including COBRA and final paychecks, asset monetization where value exists, final state and federal tax filings, and IRS Form 966. One team, one fee, 90 days. You get out clean and move on.

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  • Complete legal dissolution filing

    Board resolution template, shareholder consent, Plan of Dissolution, Certificate of Dissolution filed with Delaware (or your state), foreign qualification withdrawals, IRS Form 966. Every required filing, on the right deadline.

  • Employee wind-down done right

    State-compliant final paycheck timing, PTO payouts calculated correctly, COBRA notices within 14 days, 90-day stock option exercise notifications, WARN Act compliance if applicable. Employees come first — legally and ethically.

  • Creditor priority sequencing

    We map every liability — trade creditors, landlords, vendors, personal guarantees — and build the priority order that protects you from personal liability. Settle where we can; properly notify where we can't.

  • Asset monetization before shutdown

    IP, domains, customer lists, equipment, unused SaaS credits. We help liquidate or transfer whatever has value. Often recovers 10-30% of initial funding — money that goes back to investors (or to you, after debts).

  • Final tax filings, federal and state

    Final Form 1120 (C-Corp) or 1065 (LLC), final state returns, franchise tax settlement, 1099s to contractors, W-2s to employees, payroll tax closure. This is where most DIY wind-downs create personal liability — we don't skip any of it.

  • Clean-exit documentation package

    At close, you receive a binder: all filings, all notifications, proof of creditor settlements, tax closure confirmations. If a sheriff (or investor on your next company's due diligence) calls in 2 years, you can produce the full record in 5 minutes.

Our Process

How it works

1

Free Wind-Down Assessment (60 min)

We review your cap table, financials, creditor list, employee situation, and incorporation state. Within 5 business days we send you a written assessment: which closure path fits (managed wind-down, ABC, or bankruptcy), the full cost estimate, and the critical deadlines you need to hit.

2

Formal Kickoff (Week 1)

Board resolution drafted, shareholder consents collected, Plan of Dissolution finalized. Employee communication plan built. Creditor list sequenced. Asset inventory started.

3

Dissolution Filed + Stakeholders Notified (Weeks 2-4)

Certificate of Dissolution filed with state. Employees notified with full termination packages (severance if applicable, COBRA, stock options, final pay). Creditors notified per legal requirements. Foreign qualifications withdrawn.

4

Asset Liquidation + Debt Settlement (Weeks 4-10)

IP sold or assigned. Domains auctioned or transferred. Equipment liquidated. Debts settled or properly notified as unpaid. Remaining cash sequenced for distribution per creditor priority.

5

Final Tax Closure + Handoff (Weeks 10-13)

Final federal and state tax returns filed. IRS Form 966 submitted. Franchise taxes settled. EIN closed. Payroll tax closure. Full documentation package delivered. You're out.

Transparent Pricing

Simple, clear pricing

We do not handle bankruptcy filings (that requires a bankruptcy attorney). We do not replace your existing corporate counsel if you have one. We coordinate all filings and handle 90% of the work that a $400/hr attorney would bill you for — typically saving $15K-$40K on a standard wind-down versus a traditional law firm.

Simple Wind-Down

$2,997

  • Solo founder, <3 employees, <$100K in liabilities
  • Single state of incorporation
  • No outstanding creditor disputes
  • Delaware dissolution filing
  • Employee termination packages (up to 3)
  • Final tax filings
  • 90-day timeline
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Most Popular

Standard Wind-Down

$4,997

  • Up to 25 employees
  • Multi-state operations
  • Moderate creditor negotiations (up to 20)
  • Full dissolution + winding-up filings
  • Asset monetization support
  • Investor distribution waterfall
  • D&O tail policy guidance
  • 90-day timeline
Most Popular

Complex Wind-Down

$9,997+

  • 25+ employees or significant creditor disputes
  • Multi-entity structures
  • IP with material resale value
  • Pending litigation (not in settlement)
  • Insolvent but not bankruptcy-bound
  • ABC referral evaluation
  • Custom timeline
  • Dedicated attorney partner coordination
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Frequently asked questions

Are you lawyers?
No, and we're clear about that. We're a wind-down operations firm — we handle the process, filings, and coordination. For legal questions specific to your situation (contested creditor claims, fraud allegations, fiduciary duty questions), you need a corporate attorney. We partner with attorneys for those situations and include that coordination in Complex Wind-Down pricing. Think of us as project managers with deep wind-down expertise, not as your counsel.
When should I start?
With at least 3 months of runway remaining. Dissolution costs money, and you don't want to run out mid-process. If you're Delaware-incorporated and your fiscal year is calendar year, aim to file Certificate of Dissolution before December 31 to avoid another full year of franchise taxes. If December 31 is less than 60 days away, we prioritize getting that filing done and handle the rest in Q1.
What if I can't pay all my debts?
Three paths depending on severity. (1) Managed wind-down with negotiated creditor settlements — works if debts are moderate. (2) Assignment for Benefit of Creditors (ABC) — costs $75K-$150K but a trustee handles everything and it's the cleanest insolvent shutdown. (3) Chapter 7 bankruptcy — court-supervised, most expensive, most protective. We assess during the free consultation and refer you to ABC or bankruptcy specialists if those paths fit better.
Will this affect my personal credit?
Corporate dissolution does not directly affect your personal credit — corporate debts belong to the corporation. BUT personal guarantees survive dissolution. If you personally guaranteed a Brex card, office lease, or any other obligation, that guarantee is still enforceable against you personally. Part of our wind-down is identifying every personal guarantee early and planning around them.
Can I start another company after this?
Absolutely. Stewart Butterfield (Slack), many YC partners, and dozens of successful founders have shutdowns on their resumes. What matters for your next company's fundraise due diligence is whether you handled this shutdown cleanly. Honest communication, proper governance, correct creditor sequencing, and clean filings build your reputation. Messy shutdowns haunt founders; clean ones don't.
What about D&O insurance?
Critical. If you have D&O insurance, you need a 'tail policy' (also called Run-Off coverage) before dissolution completes — typically 6-year coverage covering claims made after shutdown for actions during your tenure. Costs 150-200% of one year's premium but protects you from post-shutdown claims. We coordinate this during the process.
What states do you work in?
Most wind-downs are Delaware because most startups are Delaware-incorporated. We also handle California, New York, Texas, and Washington directly. For other states, we coordinate with local filings through partner firms at no extra charge. Multi-state operations (where you're foreign-qualified in additional states) are standard — we withdraw every foreign qualification.
How do I tell my investors?
Part of our kickoff is building the investor communication plan. Honest, clear, and sent in writing before public communications. We draft the template, you personalize, you send. Investors doing DD on your next company will check whether you communicated honestly during this one — it's worth doing right.

Free Resource

Free Wind-Down Assessment

60-minute confidential call to review your situation. Within 5 business days you get a written assessment: which closure path fits (managed wind-down, ABC, or bankruptcy), realistic total cost, the critical deadlines you need to hit, and the top 3 risks specific to your situation. Zero pressure to engage — we'll refer you to an ABC or bankruptcy specialist if those paths fit better.

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A Clean Shutdown Is Worth More Than A Messy One. You're Not Alone In This.

Most founders go through this at least once. The ones who do it cleanly go on to build their next company. The ones who don't spend the next 3 years cleaning up. Assessment is free and confidential.

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