Employee Retention Credit for Pre-Revenue Startups
Employee Retention Credit for Pre-Revenue Startups

The Employee Retention Credit (ERC) is a refundable credit worth $7K per employee per quarter for each 2021 quarter. (Note: “refundable” means you get a check for the credit amount from the IRS. Yes, cold, hard cash!) To qualify, there needs to be a 20% reduction of...

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Section 139 Plans: Startups BEWARE
Section 139 Plans: Startups BEWARE

One of the Bay Area "usual suspects" is at it again – this time pushing "Section 139 Plans." IRS Section 139 states an employer can reimburse employees tax-free for "reasonable and necessary medical, temporary housing and transportation expense" they incur as a result of a disaster...

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Software Startups Beware: The R&D Credit Study Deception
Startups Beware: The R&D Credit Study Deception

We have prepared tax returns for over 3,000 early-stage startups and see many R&D Credit Studies done by newly-formed R&D Study firms – we will collectively call them the “usual suspects.”  You can look at an R&D Study as an insurance policy for your R&D...

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What is the California Water’s Edge Election?
What is the California Water’s Edge Election?

What is the California Water's Edge Election? And should your startup use it? Many startups we work with operate in the state of California and also have foreign subsidiaries. This can lead to complex tax situations, including the issue of determining income for the unitary group...

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