- C-Corporation Taxes – We can assist your C-Corporation file its Federal Form 1120, and the State Equivalent forms. Most of the C-Corps that we file are for early stage technology startups incorporated in Delaware. In addition to the Federal and State compliance we can assist these Startups with their Delaware Annual Filings. We support corporate tax filings for all States with a filing requirement.
- S-Corporation – We can assist S-Corporation entities with their Federal Form 1120S forms and State equivalents. We can help shareholder compute their K1s and ensure that they are calculating their reasonable salary and maximizing retirement contributions. We also help shareholder’s with their basis calculations and help them determine whether they are eligible for the Qualified Business Income (Sec.199A) tax deduction which could be worth up to 20% of the profits of the S-Corp. We support S-Corporate tax filings for all States with a filing requirement. We can also assist business owners to determine whether an S-Corporation election is right for their business.
- Limited Liability Company (LLC | Partnership) - We can assist LLC (Partnerships) with their Federal Form 1065 and State equivalents. We can help LLC’s members/partners to compute their K1s and ensure that they determine their guaranteed payments, and Distributions correctly. We also help shareholders with their basis calculations and help them determine whether they are eligible for the Qualified Business Income (Sec.199A) tax deduction which could be worth up to 20% of the profits of the LLC. We support LLC filings for all States with a filing requirement.
- Schedule C (Sole Proprietorship & Single Member LLC) - We can assist sole proprietorship and single member LLC’s file their Schedule C – Sole Proprietorship and Single Member LLC tax filings which incidentally gets filed with the owner’s 1040 personal tax return on an annual basis. Sole Proprietors have some unique tax deductions such as car & truck deduction and home office deduction which potentially lead to additional tax savings. We assist sole proprietors stay on top of filing their estimated taxes by helping them stay on top of their tax deadlines and through annual tax planning which is included as part of any tax package. Sole Proprietors are also eligible to the Qualified Business Deduction (Section 199A) which could potentially be worth up to 20% of the profits of the business.
- We can assist individual taxpayers and their spouses file their personal tax filings for Federal, State and City. Personal tax returns can be complex and with changing tax laws that has dramatically rearranged the well known 1040 form you need to work with a firm that stays on top of the latest changes. A majority of our clients have a slightly more complex personal tax situation that average which may consist of interests in businesses, investment income, capital gains, and rental property. We also help early stage tech startup founders with their personal tax filings which often consist of ensuring they file their 83b elections correctly, reporting capital gains/losses, and the tax impact of exercising stock options.
- Schedule C (Sole Proprietorship & Single Member LLC) - We can assist sole proprietorship and single member LLC’s file their Schedule C – Sole Proprietorship and Single Member LLC tax filings which incidentally gets filed with the owner’s 1040 personal tax return on an annual basis. Sole Proprietors have some unique tax deductions such as car & truck deduction and home office deduction which potentially lead to additional tax savings. We assist sole proprietors stay on top of filing their estimated taxes by helping them stay on top of their tax deadlines and through annual tax planning which is included as part of any tax package. Sole Proprietors are also eligible for the Qualified Business Deduction (Section 199A), which could potentially be worth up to 20% of the profits of the business.
We have helped our clients to determine their taxes in any life event. Whether you are getting married, having children, buying your first home or investment property, planning for college, starting a business, exercising stock options, trying to calculate estimated taxes, have an unexpected medical problem and trying to plan for retirement we can help you determine your tax strategy and share advice to save you money and time.
Are you planning to start a business? Before you try and do it yourself it will pay you in the long run to first have a conversation with both an attorney and a Certified Public Accountant to determine what entity type (C-Corp,S-Corp, LLC, Sole Proprietorship) is right for you based on the goals of the business and the stage you are in your development. We can help your business apply for a tax ID number correctly, and register for tax purposes in the States where it is necessary too. We like to recommend our business owners to concurrently work with practicing attorneys to ensure that they are covered both legally and tax wise when it comes to this decision.
- C-Corporation – Ideal for companies that are raising money from third party investors. Typically companies with the goal of going public are setup as C-Corporations. Also if you are planning on raising foreign investment C-Corporations can have foreign investors where as S-Corporation cannot.
- S-Corporation – Ideal for professional service and medical practitioners such as lawyers, doctors, IT Professionals, engineers, accountants, and consultants. Limits on ownership – 100 shareholders max, and all owners must be U.S. Residents for tax purposes. S-Corporation must adhere to strict Reasonable Salary laws for the officer/shareholders.
- Limited Liability Company – This is a very flexible type of entity which can choose the way it is taxed which can range from disregarded entity, as a partnership, as a C-Corporation, and even as a S-Corporation. There are strict archaic publication requirements in New York for instance which must be followed to keep the entity active. This entity is ideal for nearly all business owners types under most circumstances, however care must be taken to understand the tax implications, legal structure and ownership structure to understand whether this is the right entity type for your business.
- Sole Proprietorship – This is the default tax entity for most small business owners which carries inherent risks such as unlimited liability. We can help your business determine whether this is the right entity type for you and understand how you can reduce your risk exposure by incorporating when the time is right.
- Do you think you owe sales tax? We can help you determine what you owe, and when you are required to remit as well as help you file your sales tax returns on time.
- On June 21st, 2018, the Supreme Court ruled that States may charge a tax on purchases made from out-of-state sellers, even if the seller doesn’t have a physical presence in the taxing State. As of December 2018, 31 different states have standing tax laws requiring taxation of Internet purchases, most following the model of the South Dakota to only collect tax from those vendors with more than 200 shipments into the state or exceeding $100,000. Let us help your company determine whether you need to be aware of these new laws and how to stay compliant with them.
ACCOUNTING & ADVISORY
ACCOUNTING SYSTEMS IMPLEMENTATION
Businesses need real-time information in order to make decisions as well as lending and due diligence purpose either when you apply for a loan or are seeking investment from Angel and Venture Capital sources. We assist businesses with set up and staff training with Quickbooks Online. We can also assist business that may want to make the switch from Desktop to Online. We use templates and can help to create a chart of accounts that works specifically for your startup. We recognize that business owners may want to have a more detailed analysis of the various operations/business lines that make up their operations and use division (class) tracking in Quickbooks to give our clients the finer detail they need to see how they are operating across multiple business lines.
Quickbooks Online Pro-Advisors and Advanced Online Proadvisors
Our team consists of Quickbooks Online Pro-Advisors and Advanced Online Proadvisors and we have a lot of experience working with Xero and Wave apps two other popular accounting solutions. We have also got a working knowledge of Freshbooks and other G/L Packages such as Aplos.
CASH FLOW MANAGEMENT
Cash is king when it comes to business and we can assist founders with budgeting and financial modeling tools to ensure they are able to accurately plan ahead and understand their runway and burn-rate. This allows you to better plan your fundraising efforts, determine staffing levels,give your department heads budgets to work with and give you all the information needed to make an informed decision.
We can help your early-stage tech startup keep track of its bookkeeping. Seed to Series A technology startups have to frequently report their financials to the board and for due diligence requests and for annual 409A valuation purposes. Let us help your tech startup keep its books compliant with GAAP rules and record transactions on the accrual basis of accounting. Our bookkeepers are all Certified Quickbooks ProAdvisors and ensure the following tasks are completed:
- Bank reconciliation of all bank accounts on a monthly basis including recording of transactions.
- Credit Card Reconciliation of credit card accounts on a monthly basis including recording of transactions.
- Accounts Receivable – We ensure to match deposits received against outstanding invoices and reconcile the revenue on a monthly basis and review an A/R Aging report with our clients to ensure they can follow up on any delinquent customers.
- Fixed Asset Reconciliation – We help our clients establish a capitalization policy and search and identify misrecorded fixed assets such computer equipment recorded supplies and miscellaneous accessories misclassified as assets. We record monthly depreciation and amortization to ensure assets are recorded at their correct book values on a monthly basis.
- Prepaid Expenses – Insurance policies and other software subscriptions are often paid for in advance. A monthly prepaid expense reconciliation helps to ensure that expenses are booked and recorded in the correct time periods even if paid for far in advance.
- Deferred Revenue – Many of the early stage tech companies we work with often take pre-orders to have customer sign annual or multi-year contracts whilst receiving deposits far in advance. We can help tech startups ensure they are in line with revenue recognition standards, and correctly record revenues in the correct periods.
- Long Term Assets and Long-Term Liabilities:
- Many types of assets need to be amortized over long periods of time, including patents, software development costs, and other intangible assets. We ensure companies record these costs correctly.
- Investors regularly use Convertible Notes and SAFE Notes (Simple Agreement for Future Equity) to invest in the early financing rounds of a startups. We help startups ensure that these are identified and recorded correctly as a common mistake we see is that they are recorded as income instead of a long-term liability.
- Equity & Cap Table Reconciliation – The Capitalization Table can be a daunting task for any startup founder to understand. We help to ensure that the information reflected on the cap table matches the information recorded in the accounting system and help to identify and resolve any discrepancies.
- Stock Option Expense – We can help your startup record it’s stock compensation expense and ensure that it is in line with GAAP rules.
- Revenue Reconciliation – We can help to ensure revenue recognition standards are being followed when record revenue in your accounting system and assist journal entries and reclassifications to correct for deferred revenue.
- Expense Classification – When it comes to expense classification we use trends and analytical procedures to verify and analyze if there are any discrepancies.
Payroll Setup & Compliance
Early stage founders need simple to use mechanisms to ensure their teams are paid and have access to the benefits they need to incentivize them to reach their highest potential. There are multiple payroll providers and benefit providers. We can help your company choose the right solution and ensure you are registered correctly with the various State authorities to remain in compliance. We can also help you determine when there are issues with determining whether an individual should be considered an employee or contractor and explain the various reporting mechanisms in either case.
- We usually recommend working with payroll services that are strong in technology and sync directly with Quickbooks Online. Gusto, Justworks, and Trinet are three platforms we often recommend to our clients as they help compliance greatly.
Virtual Controller/CFO Solutions
Seed to Series A Startups often lack financial expertise in their management teams as there is usually an emphasis placed on technical roles at the early-stage. We can assist in these transitional periods to help founders with high level financial decision making as they navigate a high-growth stage in their businesses. Our virtual controller/CFO solutions are ideally a short-term fix as your startup looks to hire someone full-time in the role.
Board & Investor Reporting
We assist founders with developing board decks, highlighting the information their board needs to see in order to help steer the ship as founders navigate the Seed to Series A inflection point. Our philosophy is to produce concise reporting and graphics that can clearly articulate the financial picture to the board so as to facilitate the management team’s discussion and highlight to the board potential action items.