Tax issues can raise red flags for investors and lead to costly setbacks. Stay compliant and protect your startup.
Federal & state tax deadlines
Never miss a critical deadline. Stay ahead with comprehensive support for both federal and state tax requirements.
Annual tax filings
Ensure your LLC, C-Corp, or S-Corp meets all federal and state requirements effortlessly.
International subsidiary support:
U.S. companies with foreign subsidiaries must file Forms 5471 and 5472 to avoid steep penalties. Failure to comply can result in fines of $10,000 for each subsidiary and up to $25,000 for unreported foreign partners.
We’re not making a profit, so we don’t owe any taxes.
Even if your startup isn’t profitable yet, you’re still required to file tax returns. Certain taxes, such as franchise taxes, may apply regardless of profitability.
We’re a small startup; the IRS won’t notice us 🥷
Size does not exempt you from tax obligations. The IRS has systems in place to track all registered businesses, and failure to comply can result in significant fines and penalties.
We have an LLC, so we’re not subject to corporate taxes.
The IRS doesn’t discriminate based on the size of your business. Every entity, from a sole proprietorship to a large corporation, must comply with tax laws. Small businesses are often subject to scrutiny because of the potential for underreported income or misclassification of workers. Noncompliance can lead to audits, penalties, and even legal repercussions.
We filed for an extension, so we’re off the hook for now.
An LLC is a flexible business structure, but it still has tax obligations. By default, single-member LLCs are treated as sole proprietorships, and multi-member LLCs as partnerships for tax purposes. Both require filing returns and paying self-employment taxes on earnings.
We’re an S-Corp, so we don’t have to worry about taxes.
A tax extension only delays the due date for filing your return, not for paying taxes owed. Interest and late payment penalties accrue from the original tax deadline. It’s critical to estimate and pay taxes due by the original deadline to avoid unexpected financial burdens later. While S-Corps avoid corporate-level taxes by passing income, deductions, and credits to shareholders, they are not exempt from tax responsibilities. S-Corps must: - File annual information returns (Form 1120-S). - Pay payroll taxes for employees, including shareholder-employees. - Ensure proper classification and documentation of distributions to avoid reclassification as wages, which could trigger penalties.