Meet Tax Deadlines
In addition to using the best software tools to run your business, we want to make sure you’re keeping on top of taxes.
Here’s how to not miss important tax deadlines.
Tips to help your startup get through tax season
A new year means your startup has new goals and new business objectives. It also means you’ll need to deal with your tax obligations, so you can get back to the business of running your company. Generally speaking, if your startup was open at any point during the previous year, regardless of whether or not you were profitable, you’ll probably need to file taxes. To help with the process, we’ve got some tax tips you can follow.
Do you need an accountant?
There isn’t any firm rule about when you need an accountant to help you with your startup’s tax filings. It depends on the nature of your startup, your stage of growth, your personal skills with your company finances, and, most importantly, the amount of time and resources you have. But if you’re pressed for time and uncertain about your tax filings, the answer is probably “yes.” Corporate taxes involve a lot of details and deadlines, which we’re going to cover in more detail. If you find any of this unfamiliar or confusing, talk to an accountant.
What tax returns will you need to file?
Please remember that even an unprofitable startup must file tax returns. You may not need to pay income taxes if you’re not earning a profit, but you still need to provide a return to the IRS. Most startups are Delaware C corporations, which means you’ll need to file at least two returns:
- Your US federal income tax
- The Delaware state franchise tax
Your startup may also need to file taxes in some states. Different states have different tax rules, but if you’ve established a tax nexus in a state, you’ll need to file a return with that state. Business operations that create nexus include:
- A physical presence in a state, such as an office, store, or even a warehouse.
- Employees that are based in a state (even just one!).
- A certain amount of economic activity or income in a state, even if your startup doesn’t have a physical presence there.
States have different monetary and transaction threshold levels that establish nexus, and you can check our map of state tax thresholds to see if you may have tax obligations in a particular state.
What will you need to file your taxes?
You won’t be able to file your taxes until you’ve closed your books and finalized your financial statements. The documentation you’ll need gets more complex as your startup grows, but the information you’ll need includes:
- Employer identification number (EIN). Also called a Federal Tax Identification Number, your EIN identifies your business.
- General ledger. This is what we mean when we say “books”; your general ledger is a list of all your startup’s transactions with supporting documentation.
- Balance sheet. Your balance sheet lists all your assets and liabilities at the start and end of the tax year.
- Income statement. Your income statement, or profit and loss (P&L) statement, summarizes your revenue, expenses, and income (or loss) for the year.
- Company ownership. You’ll need your capitalization table, which should identify all the individual shareholders and percentages of ownership for your startup – make sure the information is current.
You may need other documents as well. You can find a more comprehensive list on our Startup Taxes page, but remember that other documentation may be required based on your startup’s industry and financial situation..
When do you need to file?
You should plan ahead to meet your tax deadlines. To help with that, check out our 2025 Startup Tax Compliance Calendar. We’ve listed the important tax dates for C-Corp startups. You can also find tax calendar information for major startup hubs which include state and local deadlines. You can download the dates to your calendar for free – so you won’t miss any filing dates!
How can I reduce my taxes?
This will depend on your startup, the type of business it is, whether you’re generating revenue, and many other factors. The two main types of tax breaks are tax deductions and tax credits. While both reduce your startup’s taxes, they work in different ways. A tax deduction reduces the amount of your income that the government will tax. So if your startup isn’t generating income, tax deductions aren’t as helpful.
Tax credits, however, reduce the amount of a tax that your startup has to pay. Tax credits aren’t calculated as a percentage of income, so that makes them more useful to early-stage companies that aren’t yet profitable. Offered at both the federal and state level, tax credits encourage businesses to engage in specific activities, such as research and development, investing in energy-efficient technologies, or hiring certain disadvantaged employees. There are quite a few tax credits available, but they don’t apply to every startup.
One of the biggest tax credits is the Research and Development (R&D) Tax Credit, which lets businesses that engage in specific research activities reduce their payroll taxes by up to $500,000. Using the R&D Tax Credit, our clients saved an average of about $75,000 in payroll taxes in 2022. You’ll need to prove that you are improving existing products, designing new software, or enhancing existing processes to claim the credit. You can use our R&D Tax Calculator to estimate how much you might save.
Calculate R&D Tax Credit for Your Startup
Unprofitable startups can reduce their burn rate up to $250,000 per year with an R&D tax credit study - $500,000 for the tax year 2023. Take advantage of the startup incentives set in place by the US government and help your startup reduce your payroll tax burden!
Your startup has to carefully document its qualified research and development activities, so you’ll also need to assemble:
- Payroll records for employees involved in R&D
- Expenses, receipts, and accounts for equipment and supplies related to R&D
- Contracts and any paid invoices for third-party partners that assisted with R&D
- Patents, designs, drawings, blueprints, and prototypes generated by your R&D
- Any project or meeting notes related to R&D
For more information, see our detailed explanation of the R&D Tax Credit along with frequently asked questions. This is a complex process, so you’ll want to use a knowledgeable startup accountant to apply for this credit.
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Competitively priced for high-growth companies
Financial Consulting
| Staff Accountant | $120 |
| Senior Staff Accountant | $170 |
| Controller | $200 |
| Senior Controller | $250 |
| Financial Modeling | $400 |
| CFO / COO / VP | $400 |
Tax Advice
| Administrative | $115 |
| Tax Analyst | $175 |
| Senior Tax Analyst | $295 |
| Tax Manager | $395 |
| Tax VP | $495 |
| CEO | $495 |
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| Pre-Seed/Seed | $2,000 |
| Seed A | $2,500 |
| Seed B | $3,000 |
| Seed C | $3,500 |
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We're huge fans of Vanessa and the folks at Kruze Consulting. They set up our books, finances, and other operations, and are constantly organized and on top of things. As a startup, you have to focus on your product and customers, and Kruze takes care of everything else (which is a massive sigh of relief). I highly highly highly recommend working with Vanessa and her team.
Vivek Sodera
Co-Founder @ Superhuman
Prior to Kruze, as a remote-first team, we were weighed down by a lot of the bureaucracy involved with having a distributed workforce. Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located
Zack Fisch
Pequity's Head of Operations & Legal
Avochato has been growing rapidly in the past year – in fact, too quickly for us to keep up with books, taxes, and budgeting for growth. Partnering with Kruze Consulting has been fantastic to manage, track, and analyze our finances while we continue focusing on building our customer base. Kruze’s team knows what startups need.
Alex De Simone
CEO @ Avochato
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Angel investor
About Us
A CPA Firm Specialized in Startup Accounting & Finance
Startups are our niche, and our passion. Our clients have raised over $15 billion in VC funding. We are one of only a few outsourced accounting firms that specialize in funded early-stage companies - we only offer financial and tax services to fast growing startups in the Pre-Seed, Seed, Series A, Series B and Series C stages.
The Right Accounting Partner for Your Startup’s Next Round
We know how to de-risk your startup’s next venture capital round. Our team makes sure you are ready to fly through your next VC’s accounting, HR and tax due diligence. And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising.
A Leader in Cloud Accounting Software
Our practice is built on best of breed cloud accounting software like QuickBooks, Netsuite, Gusto, Rippling, Taxbit, Avalara, Brex, Ramp and Deel. Technology makes us more efficient, saving our clients money and letting us offer higher value services like FP&A modeling, 409A valuation, and treasury advice. Startups deserve to work with CPAs using modern software.
Trusted by Top Venture Investors
Top angel investors and VCs refer Kruze because they trust us to give the right advice. Our clients are portfolio companies of top technology and Silicon Valley investors, including Y-Combinator, Kleiner, Sequoia, Khsola, Launch, Techstars and more. With us, your books and taxes are in order when it’s time to raise another round of venture financing.
What types of startups does Kruze Consulting usually work with?
Kruze Consulting works with funded Delaware C-Corps. Our clients have secured Pre-Seed to Series C or Series D funding. We look to partner with our clients, going beyond the typical outsourced accounting relationship and seeking to provide a higher level advisory role. We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.
Accounting, Finance, Taxes, & Payroll all in one solution
Startup CFO services, startup accounting and bookkeeping services, startup annual taxes, expense reports, payroll, state sales taxes: we've got you covered. Our software provides custom tailored dashboards that can be provided weekly or monthly, depending on your preference and plan. Founders are often so busy building their company that they don’t have time to take care of their finances. Traditionally, these companies have had to work with a basket of people to get their work done, including bookkeepers, accountants, AP clerks, CFOs, consultants, and tax accountants. At Kruze Consulting, our founders have one point person, saving time and money.
