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Of course the actual life of the business idea and team is broader and not 100% the same, but it makes sense to count the days you are actually incorporated. Yo
by erikb 11y ago
Of course the actual life of the business idea and team is broader and not 100% the same, but it makes sense to count the days you are actually incorporated. You sign the papers with your government that your corporation starts on day X and died on day Y. So this data can be used to calculate your business's life time.
- gamerDude 11y agoI was thinking about this as well. But, I think that is a bit of a problem. I had a startup that failed, but I didn't close it for a couple years with the hope that I would jump back in. I ended up starting a totally different company instead, but that first one survived for 4 years while it was really only around for 2. Since taxes are really easy when you aren't making any money, I didn't really have any reason to officially shut it down. You got to wonder how often the case is that someone delays a year because there wasn't any reason to make it official.
- erikb 11y agoNow I get what you mean. Yes, it's likely that corps are dragged along for some time even if there is no business happening. It's true that it would be hard to find out about a company that was closed after 3 years but was already dead in the middle of the first.
- bowlich 11y agoExcept in the United States you don't need to incorporate in order to start a business. You can start a sole proprietorship any old day, and don't need to report it to the government until filing your schedule C -- and if your business never made any money at all, you don't even need to file. From the IRS's perspective, I've started and failed at creating half a dozen businesses in the last ten years.