Startups are getting fined, or sometimes banned, by individual states

Quick Summary:

And state-level compliance isn’t something top of mind for startup founders, nor is it a priority for an early-stage founder’s precious budget dollars, Schulz said.“In some cases every dollar is going to the customer-facing solution,” Schulz said.“That is really why it ultimately happens.

When startups have employees in a state, conduct an acquisition, or sign customers up there, they typically need to register in the state and maintain themselves in good standing.

In 2022, Carta’s business license was revoked in Illinois for failing to pay franchise tax, a tax on national corporations doing business in the state, according to state records seen by TechCrunch.

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Article Details

Author / Journalist: Rebecca Szkutak

Category: StartupsBusiness

Markets: United States

Topics: Pulley Compliance Venture Venture capital Startups Carta

Source Website Secure: Yes (HTTPS)

News Sentiment: Positive

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-09-07 @ 15:00:00 (3 days ago)

News Timezone: GMT -5:00

News Source URL: techcrunch.com

Language: English

Article Length: 1689 words

Reading Time: 10 minutes read

Sentences: 81 lines

Sentence Length: 21 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © TechCrunch

News ID: 22447579

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Main Topics: StartupsBusiness

Official Website: techcrunch.com

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