For founders who forgot about taxes
Startup taxes,
handled before they bite.
R&D tax credits, Delaware franchise tax, your first corporate return, and multi-state payroll — the compliance that sneaks up on funded startups. The Continuous Close Method™ keeps startup tax handled alongside the books.
Taxes feel far off — until a notice lands on the founder’s desk.
01Founders pour everything into product and the raise. Tax sits at the bottom of the list, somewhere past launch. Then a Delaware franchise-tax notice arrives, an R&D credit worth real cash goes unclaimed, or the first corporate return (Form 1120) comes due on a deadline nobody tracked.
02Most early-stage founders treat tax as a once-a-year event handled by a generalist CPA who doesn’t know startups. The result is missed credits, surprise franchise-tax bills, payroll filed wrong across states, and a board that asks about tax exposure no one has modeled.
03Debit & Co. keeps startup tax handled alongside the books every month, not in a year-end scramble. R&D credit captured, Delaware franchise and state filings tracked, the first corporate return planned ahead, and multi-state payroll done right — so tax is already handled when it would otherwise bite.
Your startup has a tax gap if…
Most funded startups carry three or more of these eight conditions.
- You’ve never claimed the R&D tax credit.
Real cash back left on the table every year. - A Delaware franchise-tax bill caught you by surprise.
Penalties stack while the notice sits unopened. - No plan for your first corporate return (Form 1120).
A filing deadline arrives with the books unready. - Payroll runs across multiple states without a tax plan.
Each new state opens a filing obligation you missed.
- You’re unsure what’s deductible before you have revenue.
Startup costs get expensed wrong or missed entirely. - An investor or board member asks about tax exposure.
No one has modeled it, so the answer is a guess. - Your books aren’t tax-ready when filing season opens.
A two-week scramble to reconstruct the year. - You rely on a once-a-year CPA who doesn’t know startups.
Credits, elections, and deadlines slip through the gaps.
The Financial Clarity™ framework.
Three pillars behind the proactive startup tax funded founders rely on. Every engagement maps to them.
01
Clean.
Books that reconcile to the dollar and stay tax-ready year-round. Startup costs, deductions, and elections handled correctly the first time — not reconstructed at filing season.
02
Compliant.
R&D tax credits filed. Delaware franchise and state returns tracked. The first corporate return planned ahead and multi-state payroll registered — deadlines met by default, not discovered after a notice.
03
Communicable.
Tax exposure a founder, a board, or an investor can read. A clear answer on credits captured, liabilities owed, and what every new state or hire means for the tax picture.
Staff Accountants and Comprehensive Bookkeepers deliver against each pillar in two distinct engagement models.
Six functions behind handled startup tax.
Every engagement is composed of these six functions. The mix of Staff Accountants and Comprehensive Bookkeepers depends on your stage and what’s coming due.
R&D Tax Credit
Qualifying research activities identified and documented, the credit calculated, and the payroll-tax offset claimed where eligible — real cash back even before you turn a profit.
Pillar: Compliant · Delivered by: Staff Accountants
Delaware Franchise & State Filings
The annual Delaware franchise tax calculated on the right method and filed on time, plus state income and registration filings tracked — so a notice never arrives before the return does.
Pillar: Compliant · Delivered by: Staff Accountants
Corporate Return (Form 1120)
Your first federal corporate return planned ahead and prepared from books that are already tax-ready — deadlines, extensions, and elections handled so the filing is routine, not a fire drill.
Pillar: Compliant · Delivered by: Staff Accountants
Payroll & Multi-State
Payroll tax set up correctly and state registrations opened as you hire across the country — nexus tracked, withholding right, and each new state’s filing obligation handled before it becomes a problem.
Pillar: Compliant · Delivered by: Both
Tax-Ready Books
Reconciled books kept tax-ready every month — startup costs, deductions, and elections recorded correctly as the year happens, so filing season is a handoff, not a reconstruction.
Pillar: Clean · Delivered by: Comprehensive Bookkeepers
Founder & Investor Tax Q&A
A standing answer to the tax questions founders, boards, and investors raise — exposure modeled, credits and liabilities quantified, and the tax impact of a new hire or state spelled out before you commit.
Pillar: Communicable · Delivered by: Both
Featured case · Seed-stage SaaS
“We had no idea we qualified for the R&D credit. Debit found it, filed it, and put real cash back against our payroll taxes — and the Delaware notice that used to blindside us now just gets handled.”
Founder · Seed-stage SaaS
R&D credit
Real cash recovered pre-profit
Zero surprises
No more franchise-tax notices
First 1120
Filed on time, no scramble
Where Debit & Co. fits.
Specificity is a service. The list below is honest.
A good fit:
- A funded startup that needs proactive tax, not a year-end filing.
- Doing real R&D and likely eligible for the credit.
- Incorporated — often Delaware C-corp — with filings now due.
- Hiring across states and facing payroll and nexus questions.
- You want tax handled alongside the books, every month.
Not the right fit:
- Pre-incorporation, with no entity or filings yet.
- An established small business — see our small-business accounting.
- You want only a one-time return, not ongoing tax support.
- You want software to buy, not a finance team.
Frequently asked.
Can a pre-revenue startup claim the R&D tax credit?
Yes. A startup with no income tax to offset can still apply the R&D credit against its payroll taxes, up to the annual cap — so the credit becomes real cash even before you turn a profit. We identify the qualifying work, calculate the credit, and file the election.
What is Delaware franchise tax and do we owe it?
If you incorporated in Delaware — as most startups do — the state charges an annual franchise tax regardless of where you operate or whether you have revenue. The bill can look alarmingly large under the default method; the alternative method is usually far lower. We calculate it the right way and file on time.
When is our first corporate return due?
A C-corp’s federal return (Form 1120) is generally due the 15th day of the fourth month after your fiscal year ends — April 15 for a calendar-year company — with a six-month extension available. State returns and Delaware filings run on their own clocks. We map every deadline ahead of time so nothing arrives as a surprise.
Do you file the returns or just prepare them?
We do both. Because we keep your books tax-ready every month, preparing the federal and state returns is a handoff rather than a reconstruction — and we file them on your behalf, track the deadlines, and handle extensions and the Delaware franchise filing alongside.
What does startup tax support cost?
Pricing follows the engagement model — a fixed monthly fee that folds tax in alongside the books, scaled to your stage and what’s coming due. After a discovery call we scope the work and send a custom proposal in 48 hours, so the number reflects your situation rather than a generic package.
Ready for Financial Clarity™?
Book a 30-minute discovery call. Tell us your situation, we’ll be honest about fit, and you get a custom proposal in 48 hours.