Welcome to the Thunder Founder Newsletter Issue #19!
We can't escape two things in life: death and taxes. While, at times, taxes may seem equally bad, knowing how to navigate the various tax laws and regulations can help you minimize your tax liability, maximize your deductions, and ensure that you comply with all tax requirements.
Even as a startup that isn't profitable, you still need to file taxes. Especially if you're an LLC, your investors, and co-founders must receive K-1 filings as soon as possible to file their taxes. Don't be the reason they get penalized.
This is why most investors request that you file as a C-corp to make taxes easier.
My best advice, regardless of your situation, is to file an extension and alleviate yourself from the time crunch.
The next best advice is to hire a startup CPA and ensure you have your books updated at least quarterly to have good financial hygiene. Monthly is ideal, but you do what's best for your budget.
As a founder/CEO, you shouldn't be trying to file your taxes, it's too risky and time-consuming. Stay focused on what you're great at and outsource a task like this.
We recommend Chelsea Capital because they only work with venture-backed startups and know the ecosystem, and tax breaks, and charge reasonable rates for expert quality work. We use them for Thunder and have been very pleased with their work. (We're not getting paid to say this, we just like them a lot). Learn more about Chelsea Capital
If you're ready to raise capital, let us know and upgrade to Premium to unlock your targeted investor list of who will have a higher probability of investing. All premium clients receive a complementary consulting session with Jason Kirby, Managing Partner at Thunder. Upgrade Here
What the Experts Have to Say
A Complete Guide To Startup Taxes
An extensive guide that covers all the major topics founders need to know about as they head into tax season. This article will help avoid several headaches. Read More
The Ultimate List of Tax Deductions for Tech Startups
There are so many items that startups can use as deductions in their taxes. When cash is tight, it is important to review every possible item to ensure you save on taxes. Read More
Making the QSBS Exemption Work for You
Qualified Small Business Stock exemption is something most readers likely qualify for. It is another way to save thousands of dollars in taxes on your stock sale proceeds. Read More
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Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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