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How does AWS collect on the $80k debt? If you're a startup, you could cancel/freeze your credit card, dissolve the LLC / S Corp, set a new one up with a similar name, and transfer all IP assets over. Poof - all debts and liabilities erased.

What's wrong with this approach? It's not like they can collect on your personally, or go after the new company. (I wonder how they would even figure what legal entity is behind the new company/wesbite.)



You'd run the risk of a court deciding to pierce your LLC's shield.

https://www.nolo.com/legal-encyclopedia/personal-liability-p...


I read that, and the key thing to pay to attention is whether you willfully did something that was “unfair”, “unjust”, and “fraudulent”.

I don’t think those apply here. If by sheer accident you were hit with a giant AWS bill, and you were facing potentially having to shut down your company, and you conducted the maneuver that I described, what’s wrong with it? Your company was facing a life-or-death situation, and decided to be reborn.

Maybe there needs to be a form of corporate bankruptcy where the company can retain its core/key IP assets...


It's not like they can collect on your personally, or go after the new company.

That is not a safe assumption to make, especially if you are deliberately (AKA fraudulently) dodging debts (IANAL).


I’ve addressed this in this reply to a sibling comment stating that the LLC/corporate shield could be pierced here: https://news.ycombinator.com/item?id=22734033


Are you sure this is without any potential for legal troubles or credit rating damage that could proove as costly as just resenting but paying the bill and move on. I do not have this experience or first hand hearsay of this situation. You had this experience yourself and have an anecdote to share with us? Or this is common knowledge that I should know




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