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What Delaware-Registered Startups Need to Know About Doing Business in California

Posted by Melissa Hollis to Taxes, Business Advice

As of 2016, more than a million U.S. companies have incorporated in Delaware, including many startups and small businesses that hail from California’s Silicon Valley.

 

Why do so many startups incorporate in Delaware?

In a previous article, we discussed how incorporating in Delaware benefits businesses: Essentially, non-resident businesses don’t pay income, property, or sales taxes in Delaware.


However, if you’re planning on doing any business in California, there are still some hoops you need to jump through to avoid fees and penalties.


Here’s what you need to know if your Delaware C Corporation is based in California—aka the biggest state economy in the United States and the eighth biggest economy in the whole world!

Get Charitable this #GivingTuesday—and Get Tax Deductions!

Posted by Melissa Hollis to Taxes

No doubt about it, the holiday season is officially underway, with #BlackFriday, #SmallBusinessSaturday, and #CyberMonday raking in billions of dollars for businesses. Now that you’re all stocked up on discount TVs, it might be time to think about giving back.

Not to fear, we have a hashtag for that too: Yep, it’s #GivingTuesday.

Incorporated in Delaware? Here’s How That Impacts Your Business Taxes

Posted by Melissa Hollis to Taxes, Business Advice

Delaware isn’t a state that typically surprises you, but there’s one particular fact about the First State that might:

More businesses are incorporated in Delaware than there are people living there!

It’s not just small businesses either. In fact, over 60% of Fortune 500 companies are incorporated there. This may seem bizarre, but it’s definitely no accident: Delaware has been consciously choosing to be the ideal home for businesses as far back as 1899.

 

Whether your business already a Delaware C Corporation or hasn’t incorporated there yet, this article will explain how this impacts your taxes.

What Businesses Should Know About Schedule K-1s Before They File Taxes

Posted by Melissa Hollis to Taxes, Business

I recently overheard a casual conversation between two of my friends from inDinero’s tax team in the breakroom. Their conversation was animated, and I kept hearing the term “K-1”—naturally, I assumed they were talking about a new Star Wars character. But boy was I wrong...

 

I learned that the Schedule K-1 is not a new imperial droid, but can be just as villainous in the eyes of many small business owners.

13 Business Expenses You Definitely Cannot Deduct

Posted by Melissa Hollis to Taxes, Accounting, Startup Tips

There are many ways for businesses to lower their tax liability with deductions and credits that set off taxes directly with qualifying expenses—you’ll find 92 potential tax deductions in this article. Typically, tax law requires deductible business expenses to be ordinary (common and accepted in your trade or business) and necessary (helpful and appropriate for your trade or business). But even some expenses, no matter how relevant they are to the nature of your business, are not deductible.


Although there may be some limited exceptions, this list covers thirteen common expenses that the IRS does not considers deductible on either a business or individual income tax return.

Missed Your Tax Deadline? Here's What You Can Do

Posted by Maddy Yeazel to Taxes

There are an infinite number of reasons why a business may not be able to file their taxes on time. Between demo days, investor meetings, and late-night team strategy sessions, the bookkeeping and tax prep for an early stage company can often fall by the wayside.


With the deadlines to file and pay your 2016 business taxes behind us, the question on your mind is likely: What now?

What Bay Area Tax Hikes in 2017 Mean for Startups

Posted by Robert Schulte to Taxes, Industry News, Startup Tips

When tax rates rise, small businesses feel the brunt of the impact, but they also pass along increased costs to consumers. In recent news, many residents of the Bay Area are having a hard time getting used to the April 2017, half-cent sales tax increase imposed on a number of cities and counties that make up the startup epicenter. Keep reading to learn why taxes increase and how this year's rate hikes impacted small businesses, which cities are feeling the effects, and what you can do to ease the burden at your business.

What to do if You Commingle Personal and Business Funds

Posted by Maddy Yeazel to Taxes, Accounting, Payroll, Business

One of the most common problems we see from startup founders that are first moving off from DIY accounting is a wide range of “personal transactions” being made with the business accounts. This is known as “commingling your books” and is a huge no-no as well as one of the most common ways businesses find themselves on the barrel end of an IRS or state audit.

Do All Businesses Need to File a Federal Tax Return?

Posted by Elise Fajen to Taxes

They say “in this world, nothing is certain but death and taxes.” Well, we’re not sure if we hate or love to break it to you, but it turns out the latter is not as certain as the former, at least when it comes to business taxes.


If you’re just getting started as a business, filing taxes may not be the first thing that comes to mind. Some businesses can get away with this (for the first year or so) and others cannot—and things can get expensive if you fail to meet your tax obligations from the start. Follow along to see if your new business comes with a side of immediate tax filing responsibilities.

A Beginner’s Guide to Small Business Tax Deductions

Posted by Melissa Hollis to inDinero Academy, Taxes, Business, Guides

Whether on an individual level or as a business owner, every living, breathing citizen or resident of the United States of America has some familiarity with federal and state taxes. The mission of the Internal Revenue Service is to "provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all." This is why we must file taxes annually on our income each year.

Success starts when you take charge of your finances.

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