

Startup out of funds. Continuing on.  New corp or not? - smacktus

I have a startup which is out of money and has been running the last couple months on personal funds to pay my cofounder.<p>I&#x27;ve tried to get the previous seed investors to extend our round, but none are investing. I don&#x27;t blame them; that&#x27;s life.<p>Typically, I think, a startup shuts down.  I&#x27;m pressing on because I can fund it awhile longer on my own and believe what we&#x27;re working on now (different product&#x2F; different customers) has legs.<p>Since I can march on I ask you... should this new thing be a new corp?  I want to live up to obligations that are real, not imagined ones I have.  I also fear that if the new product gets some traction (not a lot) having previous investors would hinder raising for the new thing.
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smt88
This depends on your founding documents and your terms with the investors. The
answer is going to differ based on those, as well as your state laws.

Absolutely spend the money to hire a good lawyer who specializes in startups.
If you're getting some traction and believe you're going to succeed, you'll
save yourself a lot of heartache (and potentially huge amounts of money) by
investigating this properly right now.

