Startup Tax Return

Tue, 6 February 2018 - Vanessa Kruze

Video: What does a Startup Tax Return Cost?

How much should be a startup tax return cost?

At Kruze Consulting we analyzed thousands of tax returns across many different types of business lines and we actually came up with a calculator that we published to our website at kruzeconsulting.com, so go ahead and check that out.

But there are four main things that go into that calculator that I wanted to discuss with you, guys, today.

The first thing that we took into consideration is your fundraising realm, are you a seed, series A, or series B company? That definitely folds into the cost.

The second thing that we wanted to take into consideration is your industry, are you a marketplace, SASS company, or Fin-tech company? Depending on your industry, so if you’re Fin-tech or marketplace, that can be more expensive than just say a plain vanilla SASS or text company.

Next thing that we took into consideration is where you have Nexus, that translates into which states are we going to have to file a tax return for you. Where do you have payroll, where do you have rent, where do you have sales, all of that is going to fold of course into your tax return cost.

The last thing that we took into consideration is your volume and complexity, do you have a lot of transactions or just a few? And then how complex are you, do you have international components or do you have a parent or subsidiary companies? That can definitely make the workload a little bit more extensive and hence the price go up a little bit more. Just to give you a sense of what a tax return should cost, a plain vanilla series A tech company can expect to spend around $2,000 for their annual tax return.

 

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