I’m a CPA, Deloitte Tax alum, and I personally prepare 150+ startup tax returns a year. If you are a startup, definitely consult with a CPA or EA who specializes in startup taxation, for a few reasons:
**NOLs (Net Operating Losses). ** As a startup, you’re probably running at a loss for the first few years. You’ll want to make sure that these are properly accounted for so that you can use these “credits” when you’re rolling in profits in future years.
R&D credits. If you’re spending time and money on innovation (definition of startup), you want to make sure that you can get extra deductions. This goes back to point 1. Traditional accountants tend to glaze over the R&D forms unless prompted. You may also be eligible for R&D Tax Credits, that can help you lower your payroll taxes. Quickly estimate your R&D Tax Credits using our online calculator here.
Local Tax Compliance. There’s a number of little checkpoints that must be met throughout the year. If miss them you could see BIG fines and impassable roadblocks to future financing rounds.
I realize that taxation is boring… but it’s also critical to your life and your startup’s well being. Find a partner that you trust. I’m here to help.