CEO and Founder of Kruze Consulting
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Yes, even bootstrapped pre-revenue startups that lose money must pay taxes. You might not be subject to Income Taxes (which are based on profitability) but you will still be subject to a wide variety of other taxes which aren’t always connected to Revenue.
To start, here are 4 Startup Tax Calendars, based on metro:
Quick caveat though, these startup tax checklists aren’t complete. There are actually a bunch of taxes out there, some of which may or may not apply to you (depending on your unique circumstances, of course).
Here’s a list of just some of the different types of taxes out there that you may need to consider:
A very common misconception is that the CPA or firm that filed your annual tax return (the 1120) will have taken care of all these types of taxes: that is never the case!! It is always the CEO’s responsibility to make sure that these taxes are addressed and paid on time. Granted, a CEO can only know so much… and the CPA can only guess as to which types of taxes a company might be subject to. Hence, it’s really important to sit down with a CPA to make sure that all bases are covered based on your company’s unique situation.
In the United States, when a company sells share to a venture capital firm, this is not considered a taxable event. This is NOT the same as when a founder or current equity holder sells their shares - in that case, there are capital gains that may be taxed (although QSBS may help the seller avoid paying capital gains).
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