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Episode Date: January 28, 2021
https://youtu.be/mQiwBDJfyeQ
Top Insights
- Do it properly and you'll have less issues down the road.
- Tax compliance deadlines are available for every major market for startups.
- The IRS is not trying to shut you down. Tax collection is no different than any other business. If you have clients who don't pay, you call them and try to collect. Tax money is used to pay for important things like schools, teachers, infrastructure, etc.
- Paycheck Protection Program (PPP): A loan from the government. As long as you maintained employment levels and didn't cut people's salaries by more than ~20%, you could actually get that loan forgiven.
- PPP (Second Round): You must have gone through a reduction in gross receipts. You get 2.5 times the average gross salaries/wages you paid in 2020.
- If you are losing money, you may not owe any taxes but you still need to file a tax return. The government needs to certify that you didn't make any money.
- If you have employees in other states, odds are you may be triggering a tax nexus in those states. This is becoming common with remote work, so you may need to do a few more state tax filings.
- Your sales in another state may also create a tax nexus.
- Quickbooks helps with accounting infrastructure management and tools like TaxJar help with sales tax infrastructure management.
- There may be R&D tax credits available to your startup. There are services that make it easy to determine them. Companies that have no revenue are defacto in R&D mode but eligibility for R&D credits usually occurs about 5 years after you start generating revenue.
- If you don't pay franchise tax, you forfeit your corporate liability shield. If you get sued, the person suing you can come after you personally.