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What Do I Need to File My Startupâs Taxes?
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âAs 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 companyâs 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 Yearâs 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 doesnât 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, donât hesitate to connect with Fondo. Weâre here to help you file your startup taxes!
