Q&A icon

Startup Q&A

Back to questions

Should I prepare a tax return if a C-corp made under 50,000 USD in profit?

Vanessa Kruze Kruze Consulting

Vanessa Kruze

CEO and Founder of Kruze Consulting

Table of contents

Steps to return Startup Tax in 20 days

Yes, you must file and 1120… even if you had no activity for the year!

Filling out Form 1120 is not as easy as just inputting a few numbers, there’s actually quite a bit of informational data that needs to be entered as well. You have to have to right knowledge to know where to put those numbers and the right data. For example, if your startup had $0 revenue and expenses but had an international subsidiary - $0 revenue and expenses - and you don’t file a 5471 with your 1120… You could get hit with a $10,000 penalty!!

Filling out tax returns is a bit like a driving a rocket ship; you have to know which levers to pull and buttons to push at the right time. And while tax software exists, you need to work with a pro to make it all work. Just like you cant purely rely on WebMD to self-diagnose. With your financial health on the line, that’s why CPA’s are licensed and regulated. (Fun fact: the CPA exam is widely considered to be the most difficult professional exam.

If you’re looking for Software + a CPA for your startup tax return, check out www.KruzeTax.com. We’re Startup Tax CPA’s that use AI and software to make tax returns faster and cheaper. Professional CPA’s + Software = Confidence & Speed at a Bargain Price.

5 Steps to return Startup Tax in 20 days

Categories:

Taxes Startups

READY TO CONNECT FOR A FREE CONSULTATION?

We are the experts at helping seed/VC-backed Delaware C-Corps with their accounting and finances!


Talk with a real accountant, not a generic salesperson!

 Kruze Consulting
Scott Orn
 Kruze Consulting
Alex Janeck
 Kruze Consulting
Edith Silva

Help us get in touch

Enter your name
Enter Company name
Enter Phone number
Enter Email
Enter Message
   
  Talk to a leading startup CPA