[coffeebeqn]

> sometimes shit happens and debts go unpaid

What’s wild is that this is pre-debt. The banks will have their own risk math for you so it’ll be a completely separate set of hoops before you get to be in debt as a company. Most will not even talk to you if you have 0€ in the business account. I don’t feel like a company with no assets or income can do that much damage to their societies.

Also as a small company in the EU I have to have liability insurance for the company for any major clients so the insurance company also will make you jump through further hoops.

[marcosdumay]

> I don’t feel like a company with no assets or income can do that much damage to their societies.

Keep in mind that those companies will almost always own some debit to their employees when they blow up.

IMO, $25k is a ridiculous amount of capital to require from a company before they can operate. But capital requirements are good, and they should be proportional to employment, not company existence.

[j45]

It seems anchored in the risks of the past vs the possibilities of today.

[wavemode]

There are ways to go into debt without dealing with banks. Any time you use something and are charged afterwards, it's a debt (which you could fail to pay by being broke by the time the invoice arrives). Common example - rent/lease. Or gas/electricity.

[plagiarist]

For a new business with $0 the individual running it will be the guarantor on those.

[nradov]

Those vendors can always require payment in advance, or a guarantor.