Delaware Annual Franchise Tax |
Tax |
March 1 (annual) |
- Fee that Delaware C corporations pay for the privilege of being incorporated in Delaware
- If you owe >$5,000 in a given year, then you have to start paying estimated taxes the next year (penalties will be incurred if you don't)
- Even if your company isn’t incorporated in Delaware, check with your state of incorporation to see if/when annual reports are due to remain in “good standing”
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Annual Federal and State Tax Returns |
Tax |
April 15 (annual) |
- Form 1120 for US C corporations
- Can file an extension if you need (doesn’t extend any taxes due though - these are due by April 15)
- Typically file state returns based on where you're "doing business" in the state (i.e. have customers or employees)
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Form 5472 (Part of Federal Return) |
Tax |
April 15 (annual) |
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Quarterly Payroll Tax Returns |
Tax |
Quarterly |
- Form 940 and 941
- These are normally prepared and filed by your payroll tax provider (i.e. Gusto, Justworks, Rippling, ADP, etc)
- If you have unused R&D tax credits, these amounts are claimed on the quarterly payroll returns
- When hiring an employee in a new state, you have to register with that state’s employment department (different from department of revenue) → you can usually do this through your payroll provider
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Collecting W-8s or W-9s from Contractors/Outside Service Providers |
Tax |
As Needed |
- When you use outside vendors (i.e. contractors, accounting or legal firms, security audits, etc), you are required to collect information from them
- If the vendor is non-US, you must collect form W-8BEN; if they are US based, you collect form W-9
- Best practice to collect these forms before you pay the vendor (use Quickbooks or Track1099 to collect the W-9 first)
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Issue 1099s to US-based Vendors |
Tax |
January 31 (annual) |
- Use the information on Form W-9 to file the 1099
- The 1099 contains the total USD paid to the vendor (they use this form to file their own taxes)
- 1099s are not required for non US vendors, but we recommend analyzing if you need to file Form 1042 instead
- 1042 = Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
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Set up an Accountable Plan for Business Reimbursements |
Tax |
As Needed |
- Accountable plans are used if you plan on reimbursing business expenses to founders
-
101 on Accountable Plans
- Essentially a policy you can use for eligible business expenses
- Includes a home office reimbursement as well
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Collect Receipts and Invoices for all Material Expenses |
Tax & Accounting |
Rolling basis |
- Collect all invoices for any vendors you pay (good backup for 1099 reporting)
- Collect and store receipts for all other business expenses exceeding a threshold (say, $75)
- This documentation will be key in the event of an IRS audit → you can prove your business expense deductions are legit
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Sales Tax Review |
Tax |
As Needed |
- Once you start having revenue, you'll need to evaluate what states it's coming from (sales tax is highly complex and state-specific)
- Providing digital services can still trigger sales tax (doesn't just have to be physical items) → we recommend partnering with a sales-tax specific firm
- Softwares like Avalara or Kintsugi help with determining what states you have sales tax in and remitting the tax owed
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FBAR Reporting |
Regulatory |
As Needed |
- Required if the company has any non US bank accounts (whether the company owns the account outright or has a financial interest in it/influence over it)
- Separate online form required to be filed with FinCEN (Financial Crimes Enforcement Network, a government agency)
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Implementing a Crypto Subledger |
Accounting |
Rolling basis |
- In addition to your main accounting system (i.e. QBO), you will need a crypto subledger to track all of your crypto activity → this helps us categorize each transaction and report it in the books
- Enterprise and small business/individual options available
- Choose the subledger that’s best for your type of on-chain activity
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