We're Shutting Down and I'm Scared

Post by Spooky23 » Wed, Jan 29, 2014, 2:24 PM UTC

MortenK wrote: post #157

patio11 wrote: post #34

Earlier quoted context omitted.

In addition to Thomas being right about employee wages being able to "pierce the veil" in many states, they're the people most at risk in this situation, so you owe it to them to make sure they're taken care of. It's the one circumstance where I would backstop a company problem with personal funds. (If your company was also behind on e.g. rent or hosting, on the other hand, that risk was priced into contractual terms…

I'm surprised that both you and tptacek seem to think it's much less of a deal to pay back vendors. Say the vendor is a startup or otherwise small company who's survival is hinged on getting paid what you owe. It's okay to stiff them, because we can get away with it legally? I think it's downright dishonorable to leave vendors hanging like that. Terminate your venture in time, before you can't afford to pay what you…

Post by dragons » Wed, Jan 29, 2014, 3:16 PM UTC

nostrademons wrote: post #155

NhanH wrote: post #153

Earlier quoted context omitted.

I'm sorry I might have misunderstood you. But if you have money in your personal bank and none in the corporate bank, why would you pay yourself (and be taxed on it) rather than just use the money (your money) to cover the living expenses?

That's what I'm trying to understand from tptacek's post. Some hypotheses that come to mind: 1.) Putting money into the corporate bank and then taking it out as a nominal salary keeps you really honest with yourself. You can't say "There's money in my bank account, there's not much need for urgency", instead you see the corporate bank account dribbling dry just as if it were someone else you were paying. 2.) It reduc…

Post by clarky07 » Wed, Jan 29, 2014, 4:56 PM UTC

72deluxe wrote: post #169

clarky07 wrote: post #144

It's interesting, currently my business (bootstrapped and small) is doing just fine. Profitable, making more than I used to working for someone else, and I'm STILL scared shitless most of the time. The wife and I want to build a house and have kids and that sort of thing, and it all scares me. The really interesting thing though is that in general working for yourself is not much if any more risky than working for so…

No point working all the time to accumulate all you can only to die early from a heart attack. Working for someone else means you can go home and not think about work until tomorrow. And you can read a book and develop hobbies, learn to play an instrument, tend a garden and look after a pet. I do not envy you. I have had to work very hard in the evenings to get out of sticky situations, and despite the romantic view…

Post by richardlblair » Wed, Jan 29, 2014, 5:33 PM UTC

Post by HeyLaughingBoy » Wed, Jan 29, 2014, 7:17 PM UTC

eigenvector wrote: post #141

cperciva wrote: post #111

Earlier quoted context omitted.

keep me out of the market for credit. A good thing Have you never wanted to get a mortgage? For that matter, lots of landlords in Vancouver check credit scores in order to weed out potential bad tenants.

Protip: many landlords in hot property markets like Vancouver are speculators who are using your rent to pay their mortgage. Offer to pay a year's worth of rent up front in return for a discount (I'd ask for 3% - more than you can get from a risk-free investment but less than the landlord's mortgage interest rate). Obviously this only applies if you have sufficient liquidity that paying $30,000+ upfront isn't going t…