Digits Blog

Ignoring this tax filing isn't an option. Unfortunately, we have seen dozens of new startups miss this deadline as they operated under the assumption that they were not profitable, so no tax filings were needed.

The R&D tax credit lets startups offset up to $500,000 in payroll taxes annually. Qualifying activities include developing new products, improving processes, or building software.

From leveraging the R&D credit to planning for a tax-free exit with QSBS, these strategies can make a substantial impact on your business's growth and profitability.

To help you get ahead of your business tax filings, we've mapped out every critical deadline for the 2024 tax year (most of which you'll tackle in 2025), from federal to state requirements.

One of the most common questions we receive from startup founders is, "When should we convert from an LLC to a C corporation?" While the transition may appear straightforward, several legal and tax considerations must be considered.

Mistakes with 409A valuations are all too common in startups — but they don't have to be. From errors in execution to the misconception that they're unnecessary, these pitfalls can lead to severe tax penalties, unhappy employees, and wary investors.

QSBS isn't exactly straightforward. There's plenty of misleading information out there, and the nuances can trip up even seasoned founders. The good news? You don't have to tackle this alone.

Common startup tax deductions include office expenses, software subscriptions, professional services, marketing costs, and employee benefits. Learn IRS requirements for ordinary and necessary expenses.

If you're a startup founder or an entrepreneur frequently engaging with independent contractors or freelancers for services, you should familiarize yourself with the Internal Revenue Service's (IRS) Form 1099-NEC – a tax document introduced by the IRS in 2020 to report non-employee compensation.

As a startup founder, you have a lot on your plate, including managing finance and tax details for your business and your employees/contractors. One important document is the IRS W-9 form. Here's what you need to know about W-9s, including their significance to your business and how to handle them effectively.