Announcing Graphite’s New Tax Compliance Services for Startups

When you’re caught up in the grind of getting your startup off the ground, taxes are often the last thing on your mind—particularly if you’re not yet profitable. However, avoiding your taxes comes with serious consequences down the line. 

Failing to do your taxes leaves you incompliant, and investors may not want to take the risk of working with you. 

This is why it’s so important to put reliable tax practices in place early on in your startup’s lifespan. Graphite’s new tax compliance services allow you to worry less about taxes and focus more on growing your startup. 

Taxes Aren’t Glamorous, But They’re Critical

Let’s be honest. Doing your taxes isn’t the most exciting part of running a startup. When you’re wrapped up in the process of finding new customers and investors, it’s tempting to put taxes on the back burner. 

Your responsibility as a founder is to fight this temptation and find a solution.

There’s a huge misconception that taxes for startups are low-risk because many organizations don’t make money until several years after their initial founding. 

However, not having your ducks in a row on compliance is a huge red flag for investors, whether you’re looking to bring them on board or they’ve already made a commitment. If they review your documentation and find that you’ve filed taxes late, or worse, haven’t filed them at all, that’s a huge concern.

Tax Credits Provide Financial Benefits Too

It’s also important to note that there’s real money to be had when you file your taxes correctly. This goes beyond just filing income taxes, as there are many tax credits that your startup could be eligible for. 

In particular, many startups qualify for the R&D tax credit. 

The government launched this tax credit in the early 1980s to encourage research and development. The R&D tax credit was initially designed to help profitable organizations offset their income. 

In the last decade, the IRS adjusted this tax credit and now allows organizations to apply this tax credit to payroll taxes. This is a huge financial benefit for startups. 

If your organization invests in R&D in any capacity, you could qualify for this tax credit. This could include developing new software or a new drug in the life sciences field, for example. 

This is just one of many credits that some startups are eligible for. Working with a tax professional will help you identify these types of opportunities and keep more money in your business. 

Tax Compliance Is the Last Thing Founders Want to Worry About

Graphite already provides expert accounting and financial guidance to our startup clients. Since taxes are such an important piece of the financial puzzle, we’ve expanded to offer fully managed tax compliance as a service. 

We’re now a one-stop shop for startup taxes, accounting, and finance. 

Graphite handles filing deadlines and other important tax tasks in the background of all of the exciting work you get more time to focus on. This service is available year-round on a subscription basis…it’s an always-on, fully managed service.

What Do Our Tax Compliance Services Include?

Our tax compliance service is comprehensive, tackling everything from standard income tax filings to more complex local regulations. 

• Income tax compliance: Even if your startup isn’t profitable yet, you’ll still need to file your income taxes. We’ll ensure that filings are done on time and fully compliant. 

• Sales tax compliance: Depending on your product, you likely need to pay sales taxes in the states that you’re operating in. Graphite helps you understand relevant city and state sales tax regulations and ensure you’re compliant.

• Tax credit analysis and filing: You may be eligible for R&D tax credits, work opportunity tax credits, and a variety of other credits that could help you offset expenses. Graphite’s tax experts analyze your current financial structure to determine which tax credits make the most sense for your organization. 

• Delaware franchise taxes: If you’re incorporated in Delaware, you need to pay a flat franchise tax each year. Graphite helps you file and pay this tax on time. 

• 1099s: If you work with contractors, you’ll need to file 1099s. Graphite works with you to create 1099 and W-9 forms up front to avoid scrambling come tax season in April. 

• Ongoing advisory support: We work proactively with founders to help you build a sustainable long-term tax strategy.

Let Graphite Handle Your Tax Compliance Needs

Don’t struggle through your taxes on your own—let Graphite take them off your plate. 

Graphite’s tax, accounting, and financial services are built specifically with startups in mind, and we’re here to help you navigate all the ups and downs of a high-growth trajectory. Reach out today so you can get support from Graphite’s tax compliance services.