Startup Shutdown: The Services That Handle a Wind-Down, Compared
The kinds of help available to wind down a startup, what each handles, and how to pick.
This page is one part of our guide on how to shut down a company.
Startups can hand off a shutdown to a full-service wind-down platform, split it between a startup lawyer and an accountant, or use an assignment for the benefit of creditors when debts exceed assets. The right choice depends on cash left, debts, investor complexity and how much time the founders have.
Your startup shutdown service options
| Type of help | What they handle | Best for |
|---|---|---|
| Full-service shutdown platforms | Filings, final taxes, payroll wrap-up, investor updates, vendor and state account closures, often asset sales | Funded startups that want one team to run the whole process |
| Startup law firm plus CPA | Board and shareholder approvals, dissolution filings, final returns | Founders who want their existing advisors and can coordinate the pieces |
| Assignment for the benefit of creditors (ABC) | An assignee takes over assets, sells them and pays creditors | Companies whose debts exceed their assets |
| Asset and data buyers | Buy or license code, domains, IP and operating data | Any shutdown with a codebase or years of workplace records |
Example: SimpleClosure
SimpleClosure is the best known full-service platform for startup shutdowns. It coordinates taxes, legal filings, investor updates, banking, state registrations, payroll and vendor contracts in one process, and its AssetHub product sells code and workspace data on the way out. Pricing isn't published. See how its data sales compare in Polyshares vs SimpleClosure.
How to choose
- Ask what's included. Get a written scope covering filings, every tax return, payroll and investor communications.
- Ask how fees work. Flat fee, hourly, or a cut of asset sales. A percentage of a data or code sale can be significant.
- Value your assets separately. Get your own estimate for code and workplace data before agreeing to a bundled sale.
- Check timing. Some providers add surge pricing late in the year, when many companies close.
Next in this series: company data in bankruptcy and assignment for the benefit of creditors.
Common questions
How much does a startup shutdown service cost?
Most providers don't publish prices. Expect a quote based on entity complexity, number of states and employees, and cap table size.
Do I need a shutdown service?
Not always. A simple company with a good lawyer and accountant can handle it. Services save the most time for funded startups with investors, employees in several states, and assets to sell.
Can I sell my startup's data separately from the shutdown?
Yes. You can get offers from direct buyers before committing to a bundled sale through a wind-down provider, then compare.