Taxes for Tech Companies

Delaware C-Corp Tax Compliance and Founder Taxes.
EARLY-STAGE-STARTUP-TAXES
Early Stage Startup Taxes

Tech Company & Founder Taxes

Early Stage Technology Startups have a unique tax situation that needs to be carefully considered to ensure it factors in the founders shares in the business, the various rounds of investment, employee stock options, R&D Tax Credits, State R&D Incentives, and planning for the eventuality of an exit.

We also help founders with their personal tax situation as it can be complex as a result of 83b elections, stock option exercise planning, and capital gains considerations as a result of Qualified Small Business Stock Tax Treatment.

C-Corporation Taxes

We can assist your C-Corporation file its Federal Form 1120, and the State Equivalent forms. Most of the C-Corps that we file are for early stage technology startups incorporated in Delaware. In addition to the Federal and State compliance we can assist these Startups with their Delaware Annual Filings. We support corporate tax filings for all States with a filing requirement.

Limited Liability Company (LLC | Partnership)

We can assist LLC (Partnerships) with their Federal Form 1065 and State equivalents. We can help LLC’s members/partners to compute their K1s and ensure that they determine their guaranteed payments, and Distributions correctly. We also help shareholders with their basis calculations and help them determine whether they are eligible for the Qualified Business Income (Sec.199A) tax deduction which could be worth up to 20% of the profits of the LLC. We support LLC filings for all States with a filing requirement.

S-Corporation

We can assist S-Corporation entities with their Federal Form 1120S forms and State equivalents. We can help shareholder compute their K1s and ensure that they are calculating their reasonable salary and maximizing retirement contributions. We also help shareholder’s with their basis calculations and help them determine whether they are eligible for the Qualified Business Income (Sec.199A) tax deduction which could be worth up to 20% of the profits of the S-Corp. We support S-Corporate tax filings for all States with a filing requirement. We can also assist business owners to determine whether an S-Corporation election is right for their business.

Schedule C (Sole Proprietorship & Single Member LLC)

We can assist sole proprietorship and single member LLC’s file their Schedule C – Sole Proprietorship and Single Member LLC tax filings which incidentally gets filed with the owner’s 1040 personal tax return on an annual basis. Sole Proprietors have some unique tax deductions such as car & truck deduction and home office deduction which potentially lead to additional tax savings. We assist sole proprietors stay on top of filing their estimated taxes by helping them stay on top of their tax deadlines and through annual tax planning which is included as part of any tax package. Sole Proprietors are also eligible to the Qualified Business Deduction (Section 199A) which could potentially be worth up to 20% of the profits of the business.

Pre-Seed

Starting at
$600/month
($500/month if billed annually)
  • Reconcile Quickbooks Online
    Accrual Based Bookkeeping
  • Monthly Call
  • Chart of Accounts Template Provide
    A/P A/R Tracking By Client
  • Delaware Filings
  • Annual Tax Compliance (1120, and one State Filing)
  • Sales Tax Filings (Optional)

Seed

Starting at

$900/month

($800/month if billed annually)

  • Reconcile Quickbooks Online
  • Accrual Based Bookkeeping
  • Monthly Call
  • Customized Chart of Accounts
  • Deferred Revenue Recognition
  • A/P, A/R Tracking
  • Inventory/COGS Reconciliation
  • Financial Metrics
  • Annual Tax Compliance (1120, and one State Filing)
  • Sales Tax Filings

Series A & Beyond

Based On Your Needs
Custom Quote

(discount if billed annually)

  • Reconcile Quickbooks Online
  • Accrual Based Bookkeeping
  • Monthly Call and ongoing communication
  • Customized Chart of Accounts
  • Deferred Revenue Recognition
  • A/P, A/R Tracking
  • Inventory/COGS Reconciliation
  • Board Financials and Metrics
  • Annual Tax Compliance (1120, and State Filing)
  • Sales Tax Filings
Setting up Founders for Success

Business Formation

Are you planning to start a business? Before you try and do it yourself it will pay you in the long run to first have a conversation with both an attorney and a Certified Public Accountant to determine what entity type (C-Corp,S-Corp, LLC, Sole Proprietorship) is right for you based on the goals of the business and the stage you are in your development. We can help your business apply for a tax ID number correctly, and register for tax purposes in the States where it is necessary too. We like to recommend our business owners to concurrently work with practicing attorneys to ensure that they are covered both legally and tax wise when it comes to this decision.

C-Corporation

Ideal for companies that are raising money from third party investors. Typically companies with the goal of going public are setup as C-Corporations. Also if you are planning on raising foreign investment C-Corporations can have foreign investors where as S-Corporation cannot.

Limited Liability Company

This is a very flexible type of entity which can choose the way it is taxed which can range from disregarded entity, as a partnership, as a C-Corporation, and even as a S-Corporation. There are strict archaic publication requirements in New York for instance which must be followed to keep the entity active. This entity is ideal for nearly all business owners types under most circumstances, however care must be taken to understand the tax implications, legal structure and ownership structure to understand whether this is the right entity type for your business.

S-Corporation

Ideal for professional service and medical practitioners such as lawyers, doctors, IT Professionals, engineers, accountants, and consultants. Limits on ownership – 100 shareholders max, and all owners must be U.S. Residents for tax purposes. S-Corporation must adhere to strict Reasonable Salary laws for the officer/shareholders.

Sole Proprietorship

This is the default tax entity for most small business owners which carries inherent risks such as unlimited liability. We can help your business determine whether this is the right entity type for you and understand how you can reduce your risk exposure by incorporating when the time is right.
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Tax Planning

Get help with determining your startups taxes, and how it will impact you as a founder. We can help determine a tax strategy to save you money and time.
More Information
We have helped our clients to determine their taxes in any life event. Whether you are getting married, having children, buying your first home or investment property, planning for college, starting a business, exercising stock options, trying to calculate estimated taxes, have an unexpected medical problem and trying to plan for retirement we can help you determine your tax strategy and share advice to save you money and time.

Sales Tax

Get help with determining what you owe, and when you are required to remit as well as filing your sales tax returns on time.
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Do you think you owe sales tax? We can help you determine what you owe, and when you are required to remit as well as help you file your sales tax returns on time.

On June 21st, 2018, the Supreme Court ruled that States may charge a tax on purchases made from out-of-state sellers, even if the seller doesn’t have a physical presence in the taxing State.​ As of December 2018, 31 different states have standing tax laws requiring taxation of Internet purchases, most following the model of the South Dakota to only collect tax from those vendors with more than 200 shipments into the state or exceeding $100,000​. Let us help your company determine whether you need to be aware of these new laws and how to stay compliant with them.

Payroll Setup & Compliance

We can help your company choose the right solution and ensure you are registered correctly with the State authorities to remain in compliance.
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Early stage founders need simple to use mechanisms to ensure their teams are paid and have access to the benefits they need to incentivize them to reach their highest potential. There are multiple payroll providers and benefit providers. We can help your company choose the right solution and ensure you are registered correctly with the various State authorities to remain in compliance. We can also help you determine when there are issues with determining whether an individual should be considered an employee or contractor and explain the various reporting mechanisms in either case.

We usually recommend working with payroll services that are strong in technology and sync directly with Quickbooks Online. Gusto, Justworks, and Trinet are three platforms we often recommend to our clients as they help compliance greatly.

Our Process

1

Step 1: Contact Us

Get in touch and we’ll reach out to you to schedule a video call to better understand your tech startups needs and prepare a custom quote.

2

Step 2: Onboarding

We’ll invite you to our secure client portal where you can use our easy to use onboarding checklist to get started. See general pricing guide here.

3

Step 3: Review

We schedule ongoing video calls with you to review your financials and ensure all of your tax compliance is taken care off.