Tax Services for Startups

Filing taxes for your small business requires gathering accurate documentation to report your income and expenses. Here's a breakdown of essential items:

Business Financial Statements: This includes your income statement (profit and loss statement), balance sheet, and ideally, a cash flow statement. These documents paint a clear picture of your business activity.

Income Records: Keep track of all your business income, including sales revenue, interest earned, and any other income sources. Documents like invoices, receipts, and bank statements can help verify this information.

Expense Records: Maintain detailed records of all your business expenses. This includes rent, salaries, office supplies, marketing costs, and any other legitimate business expenditures. Receipts, bills, and bank statements are crucial for documenting these.

Tax Forms: The specific forms you need depend on your business structure (sole proprietorship, partnership, corporation) and location. The IRS website has federal forms, and your state's department of revenue will have information on required state tax forms.

Employee Tax Documents (if applicable): If you have employees, you'll need forms like W-2s (reporting wages paid) and 1099s (reporting payments to independent contractors).

Good organization throughout the year makes tax filing much smoother. Consider using accounting software or consulting a tax professional for guidance on recordkeeping and ensuring you have everything needed come tax season.

Tax compliance isn't just about avoiding penalties. It safeguards your business by protecting your cash flow from fines and interest. It polishes your reputation, attracting customers and investors who value responsible practices. Compliance also unlocks potential tax breaks and grants that fuel growth. By keeping your financial records clean, you gain a clear view of your business's health and make informed decisions. Ultimately, compliance minimizes the risk of disruptive audits, enabling you to focus on what truly matters: running a thriving business.

The deadlines for filing your business taxes depend on two main factors: your business structure (sole proprietorship, partnership, corporation) and your tax year. Here's a quick rundown:

• Sole Proprietorships and Single-Member LLCs taxed as Sole Proprietorships: These businesses typically file using their personal tax return with a schedule attached (usually Schedule C) by the 15th of April (15th of June if filing an extension).
• Partnerships and LLCs taxed as Partnerships: Partnerships themselves don't pay taxes, but each partner reports their share of the income on their personal return by April 15 (with an extension to June 15).
• Corporations (C Corps and S Corps): Corporations have separate tax filings from their owners. C Corporations typically have a deadline of the 15th day of the fourth month after the tax year ends (often April 15th for calendar year corporations). S Corporations generally have a deadline of the 15th day of the third month following the end of the tax year.

These are general deadlines; state filing requirements may have different due dates. It's always best to consult with a tax professional or check with your state's department of revenue to ensure you meet all filing deadlines and avoid penalties.

Many business expenses can be deducted from your taxes, helping you lower your taxable income. These generally fall into categories such as business operations (rent, utilities), employee costs (salaries, benefits), marketing (website, advertising), and professional fees (legal, accounting). You can even deduct some interest on business loans and a portion of home office expenses if you meet specific requirements. The key thing to remember is that the expense must be ordinary (common in your industry) and necessary for your business, and the amount should be reasonable. Keep receipts and documentation to prove your deductions. While this covers many common scenarios, tax laws can be intricate, and there might be limitations or exceptions. Consulting a tax professional ensures you claim all eligible deductions and navigate the tax code effectively.

Outsourcing tax preparation is a quick process. On average, it takes 2–3 weeks to set up the complete system, including onboarding, document collection, and preparing a custom time sheet for IRS tax payments. Once the setup is complete, your taxes will be filed accurately and on schedule, avoiding last-minute stress. We recommend starting in advance, rather than close to the tax season, to avoid last-minute hassles.

Absolutely. With our corporate tax compliance service, you get a dedicated tax professional who will be available to answer questions, clarify doubts, and provide updates whenever needed. You’ll never feel left in the dark during the tax filing process.

Transparency is a key benefit of outsourcing. We provide frequent task updates and use a system that welcomes two-way communication. This way, you are always in the loop, with complete visibility and control over your tax compliance process.

For most startups and small businesses, the answer is yes. An outsourced corporate tax compliance service typically costs less than hiring a full-time accountant or CPA while giving you access to a broader range of expertise—from payroll taxes to R&D tax credits and audit support.

Yes. By outsourcing, you gain access to tax experts who know IRS rules inside out. We help you:

• Avoid costly tax mistakes
• Adhere to a custom filing schedule
• Identify deductions and credits (including R&D tax credit services for qualifying startups)

This ensures you pay only what’s required — no unnecessary penalties or overpayments.

The exact coverage of a tax service can vary depending on the provider, but most reputable services will offer a comprehensive package to address your business tax needs. This typically includes:

• Tax preparation and filing: They'll handle the preparation of your federal and state business tax returns, ensuring accuracy and maximizing your deductions and credits.
• Tax planning and consulting: They can advise you on tax-saving strategies throughout the year, such as optimizing your business structure or suggesting tax-deductible benefits for employees.
• Estimated tax guidance: They can help you determine if you need to make estimated tax payments and calculate the appropriate amounts to avoid penalties.
• Audit representation: In case of an audit by the IRS or state tax authorities, the service can provide professional representation to protect your interests.
• Staying informed: They'll keep you updated on any changes or new developments in tax laws that might affect your business.

By utilizing a tax service for startups, you gain access to professional expertise that can save you time, money, and stress when dealing with your business taxes.

Profitjets offers tax services to a broad range of industries. Here are some examples of industries that commonly benefit from professional tax services for Profitjets

• Technology Startups: These businesses often deal with complex tax implications related to stock options, intellectual property, and research and development credits.
• E-commerce Businesses: Managing sales tax across different states can be intricate. Tax services can ensure compliance and avoid potential tax liabilities.
• Professional Services Firms: Law firms, accounting firms, and consultancies often have a partnership structure and may benefit from tax strategies to optimize profit distribution.
• Freelancers and Contractors: Independent workers might need help navigating self-employment taxes and claiming home office deductions.
• Manufacturing Companies: Manufacturing businesses often face complexities related to depreciation of equipment, inventory management, and international trade taxes.
• Healthcare Providers: Tax laws specific to the healthcare industry can be challenging to navigate. A tax service can ensure compliance and identify relevant deductions.

This is not an exhaustive list, but only a glimpse of industries that benefit from professional tax services.

We offer prices tailored to your specific requirements, along with a detailed breakdown of the services we provide.

Our professionals stay updated with the latest IRS regulations and state-specific tax codes. We handle everything from quarterly estimated taxes to sales tax filings, ensuring 100% compliance with all applicable regulations. With an outsourced partner, you avoid errors that can trigger IRS notices or audits.

We provide a very flexible contract period, ensuring your organization receives the best care for the duration required. We even offer services on an hourly basis.

Yes, all our clients receive a legal agreement that includes important clauses such as Non-Solicitation, Data Security, Performance Standards, Confidentiality, and Full Ownership of Records.

Yes. Outsourced tax services are fully scalable. Whether you’re a new startup needing R&D tax credit services or a growing company looking for full corporate tax compliance, the support adapts to your needs without the overhead of hiring additional staff.