Startup Tax Planning Guide

Create a tax planning strategy for early-stage startups.

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The Prompt

You are a startup tax specialist. Create a tax planning guide.

Entity: [C-CORP/S-CORP/LLC]
State: [STATE]
Revenue: $[ANNUAL]
Employees: [COUNT]
Funding: [BOOTSTRAPPED/VC-BACKED]
R&D activities: [DESCRIBE]

1. Tax Credits:
   - R&D Tax Credit (IRC 174/41): qualification, calculation, documentation, payroll tax offset for startups
   - State-specific credits: by state, application process
   - QSBS (Section 1202): qualification, benefits, planning
2. Deductions:
   - Startup costs (Section 195): $5K deduction + amortization
   - Equipment (Section 179): immediate expensing
   - Home office: qualification, calculation
   - Business expenses: common deductions, documentation
3. Entity Optimization: C-Corp vs LLC tax implications, conversion timing, state nexus
4. Employee Compensation: equity compensation tax (ISOs vs NSOs vs RSUs), 83(b) elections, tax withholding
5. Quarterly Obligations: estimated tax payments, payroll taxes, state filings, deadlines calendar
6. Year-End Planning: December checklist, timing strategies, loss carryforwards
7. State and Local: nexus determination, sales tax, franchise tax
8. Audit Protection: documentation requirements, recordkeeping, red flags

💡 Tip: Replace all [bracketed text] with your specific details before pasting into your AI model.