What Do I Need to File My Startup’s Taxes?

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‍As the extended tax deadline approaches, it's crucial to gather everything you need to file your C corporation's taxes. Whether this is your first time or you're a seasoned filer, being prepared ensures a smooth and efficient process. Here's a comprehensive guide on what to collect to file your startup's taxes effectively.

1. Company Demographic Information

Start with the basics:

• Legal Name: The official name of your business as registered.
• EIN (Employer Identification Number): Your company’s federal tax ID.
• Mailing Address: Where all official correspondence from the IRS and other entities is sent.

2. Officer and Shareholder Information

You'll need details about your company's key figures:

• Officer Compensation: Amounts paid to your key executives during the year.
• Cap Table: A breakdown of ownership percentages among your shareholders. This helps the IRS understand the distribution of ownership in your company

3. Payroll and State Tax Information

Payroll data is vital, especially for officer compensation and state taxes:

• Payroll by Employee and State: Details on how much each employee was paid and in which state they worked. This is particularly important for calculating state tax obligations and determining nexus.
• R&D Credits: If your company engages in research and development (often reflected in engineering or product wages), you may be eligible for tax credits.

4. Profit and Loss Statement (P&L)

Your P&L statement, also known as the income statement, summarizes your company's revenues, costs, and expenses during the tax year. It typically includes:

• Revenues: All income generated from your business activities.
• Expenses: Costs incurred, such as operating expenses, salaries, rent, and other overheads.

This report forms the starting point for determining your taxable income before applying tax adjustments.

6. Prior Year’s Tax Return

If you filed taxes last year, having your prior year's return package on hand is crucial:

• Carryforward Amounts: Items like Net Operating Losses (NOLs) and Schedule L balance sheet information may carry over from the previous year and need to be reported.

Need More Help?

Filing taxes for your startup doesn’t have to be overwhelming. By gathering the right information ahead of time, you can streamline the process and avoid last-minute stress. If you have any questions or need assistance with your tax filing, don’t hesitate to connect with Fondo. We’re here to help you file your startup taxes!

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