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Startup Dissolution Decision Checklist

Prepare an evidence-based closure conversation and a complete question list for qualified legal, tax, and financial advisors.

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Built for founder commitment decisions

Use this template when

Founder teams considering whether to close a startup and needing a structured inventory before taking formal action.

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The downloaded Word file includes the same sections below, so you can review the structure before saving it.

1. Decision threshold

A written threshold separates temporary difficulty from the conditions under which continuing would no longer be responsible or viable.

  • Runway or solvency threshold: [For advisor review]
  • Product or market threshold: [Evidence]
  • Founder capacity threshold: [Condition]
  • Alternatives tested before closure: [Actions]

2. Stakeholders and obligations

A stakeholder inventory helps founders avoid overlooking duties to employees, customers, investors, creditors, and authorities.

  • Employees and contractors: [List and obligations]
  • Customers and partners: [List and commitments]
  • Investors, lenders, and creditors: [List]
  • Authorities and filings: [For professional review]

3. Cash and liabilities

Current cash and liability facts are necessary to sequence decisions without preferring assumptions over valid obligations.

  • Cash by account and date: [Amounts]
  • Known liabilities and due dates: [List]
  • Contingent or disputed obligations: [List]
  • Payments requiring advisor guidance: [Items]

4. IP/data/contracts

Intellectual property, personal data, and contracts may carry ongoing restrictions even after operations stop.

  • Company IP and ownership records: [Inventory]
  • Customer and personal data: [Retention or deletion questions]
  • Active contracts and termination terms: [List]
  • Systems, domains, and repositories: [Disposition plan]

5. Team/customer communication

Sequenced, factual communication reduces avoidable harm and helps stakeholders understand service, support, and contact changes.

  • Team message, owner, and timing: [Plan]
  • Customer message, owner, and timing: [Plan]
  • Investor and partner message: [Plan]
  • Support and records contact after closure: [Details]

6. Formal closure

Formal closure requires jurisdiction-specific steps so ending operations is not mistaken for ending the company's obligations.

  • Board or shareholder approvals: [For counsel]
  • Government and tax filings: [For advisors]
  • Account and registration closures: [Checklist]
  • Final records owner and retention: [Name and plan]

Disclaimer

This checklist is a decision aid and not legal, tax, financial, insolvency, or accounting advice. Engage qualified professionals in every relevant jurisdiction before acting.

Download, adapt, then validate the partnership

A template helps you structure the conversation. CofounderFit helps you test whether the partnership can survive the conversation before equity, vesting, and commitment are final.

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Startup Dissolution Decision Checklist FAQ

When should founders use a dissolution checklist?

Use it when closure is a realistic option, early enough to preserve records, cash visibility, stakeholder communication, and access to professional advice.

Who should participate in a startup closure decision?

Founders and authorized governing bodies should work with qualified legal, tax, accounting, and insolvency professionals appropriate to the company's circumstances.

What is the most serious dissolution risk?

Stopping operations without formal advice can leave statutory filings, creditor duties, employee matters, contracts, data, and records unresolved.

Legal disclaimer

This template is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and enforceability vary by jurisdiction. Have any final agreement reviewed by a qualified professional before signing.