Tax Questions

Entrepreneurs can set up their business as a Sole Proprietorship, C-corporation, S-corporation, partnership, non-profit, Limited Liability Company, or Limited Liability Partnership.

0 Votes
2 Answers
645 Views
How difficult (or how does one) apply for R&D Tax Credits (USA) for software development (new product)?

We are developing a new web-based product. Looking for feedback from people who have applied for such tax credits. What are the steps to applying for an R&D Tax Credit? How difficult was it...

asked Mar 27 '13 at 23:17
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Clay Nichols
737 points

4 Votes
3 Answers
1.05K Views
Have you applied for R&D tax credits?

Like many software product companies, we spent an exorbitant amount of money in 2008 developing our product. I’ve heard that there are federal R&D tax credits available ("Section 41 Credit"),...

asked Oct 15 '09 at 12:08
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Alex Papadimoulis
5,901 points

1 Votes
4 Answers
1.36K Views
What's the legal framework for a US company (Delaware LLC) to hire a full-time remote developer (e.g. India, Sri Lanka)?

We don't need a one-shot collaboration (see elance.com, odesk.com) but a long-term remote developer. We don't know, legally speaking, how to proceed and which are the needed steps. Thank you

asked Oct 12 '10 at 23:45
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Leonardo Dario Perna
106 points

5 Votes
7 Answers
6K Views
Options for hiring Indian workers directly

My core aim is to hire people directly in India (Delhi) and spend a lot of time there myself (I am a British person with a British passport). I am interested in knowing what are the best options...

asked Dec 10 '10 at 22:47
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Dav
26 points

6 Votes
4 Answers
12.8K Views
Filling out a W9 as a Single Member LLC

I previously operated my consulting business as a sole proprietor operating under my own name, using my SSN on W9 forms, etc. I have since registered an LLC and am starting to bring in clients. I...

asked Apr 17 '12 at 10:39
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Eddy Luten
171 points

7 Votes
4 Answers
3.89K Views
Alternative to QuickBooks for a small (1 man) S-Corp?

I'm currently using a 2009 version of QuickBooks Pro for my S-Corp accounting needs. They recently sent me a letter "suggesting" I upgrade to the 2012 version ($200+) as many of the features of the...

asked Mar 10 '12 at 03:23
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Dave
160 points

3 Votes
3 Answers
2.75K Views
Is it legal to pay employees or contractors in bitcoin (artificial e-currency)?

I am from central Europe, and there is really HUGE taxation (about 0,44 on wages, 0,2 on goods, so about 55pct goes to taxation black hole). I got idea - is it useful scenario to pay my employees...

asked Mar 26 '12 at 00:14
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Joseph
21 points

1 Votes
2 Answers
3.34K Views
Can I start a company in India while working in the USA on an H1B?

Can I start an internet-based company in India, while working in the USA on an H1B visa? Will I be able to incorporate in India and pay taxes? Is it allowed? What are my options?

asked Jul 20 '11 at 23:14
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Ravi
6 points

1 Votes
2 Answers
1.07K Views
Can you avoid paying taxes by not living in any one country for more than 2 months?

This question might seem more negative than it is...I'm looking to travel the world and build my startup on-the-go. Would I need to pay income tax in any country if I don't stay in a country for...

asked Jul 1 '14 at 14:28
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Willie Hudson
6 points

1 Votes
1 Answers
987 Views
Does incorporating your startup in another country for tax benefits negatively affect being able to raise money from VCs?

If we were to incorporate our company in another company (where one of our co-founder lives), would that seriously limit our ability to raise money from venture capital firms?The primary benefit to...

asked Jul 10 '14 at 20:14
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Ronald Whittaker
7 points

6 Votes
7 Answers
1.99K Views
DIY Payroll Processing?

I have tried (and been rejected by) a few online payroll solutions. As I am about to start (very soon) working with real employees, I need to find a way to do payroll more or less manually (though...

asked Mar 30 '12 at 01:53
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Michael Trausch
135 points

0 Votes
1 Answers
1K Views
Way around Amazon and other merchant's policy to not work with NY based affiliate marketers due to sales tax law?

Until NY state came up with the internet sales tax law, affiliate marketing was the primary way I generated revenue from my site. Since Amazon and other companies started to stop working with NY...

asked Mar 11 '14 at 23:58
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Joseph Hager
10 points

1 Votes
1 Answers
760 Views
Self-employed, no completed projects yet: can I write my laptop off my taxes?

I've recently started working on a couple of software projects that I hope will generate income in 2014. I eventually want to form an LLC, but I'll probably end up doing that closer to completion...

asked Dec 10 '13 at 19:30
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Archagon
111 points

0 Votes
2 Answers
657 Views
Tax Deduction On Advertising

As a sole-proprietorship living in the US. If I make $50000 income and I spent $10000 in advertising. My taxable income is $40000, correct? Now, if I re-invest the entire $40000 back into...

asked Nov 29 '13 at 09:52
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User29838
1 point

0 Votes
1 Answers
520 Views
Owning 50% of a Controlled Foreign Corporation (CFC)

I am resident in the USA. If I hold 50% shares on a foreign corporation in a beneficial tax regime, according to the US CFC rules I will own a controlled foreign corporation (CFC). Would I be...

asked Nov 29 '13 at 09:58
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User29838
1 point

0 Votes
2 Answers
925 Views
I'm leaving a startup, am I responsible for money taken out of the business account?

I have been working on a startup for 5 months. The startup has some outside investment and money in the bank. My co-founder is CEO and never set up payroll. Instead, he had us taking money directly...

asked Nov 22 '13 at 09:16
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David P6
1 point

0 Votes
2 Answers
2.64K Views
Tax consequences to transfer ownership of single member llc to wife upon death

I have a single member LLC in New Jersey. Upon my death, will my wife be taxed (and how much) if I assign my ownership interest to her as per an operating agreement?

asked Nov 22 '13 at 12:28
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Infi
1 point

1 Votes
1 Answers
656 Views
Treating Capital as Expenses during the first year

I believe that during the first year of operations a new LLC can treat all capital (up to $50,000) as expenses instead of having to amortize over 180 months. I have 3 questions related to...

asked Oct 26 '13 at 02:45
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John E Watson
14 points

1 Votes
1 Answers
842 Views
How are LLC members taxed?

If an LLC is setup with two members (50% each) and the total income is $200,000 annual, how does that work for each member with regard to taxation? Does each member have to file an income of...

asked Oct 31 '13 at 01:57
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Dustin Davis
272 points

1 Votes
2 Answers
691 Views
Are there any hidden gotchas to choosing different fiscal year?

I'm setting up a C-Corporation (its Mid October at time of this writing) and planning a Kickstarter project projecting to raise $100k in funds by late November. As I understanding, KS funds are...

asked Oct 10 '13 at 04:13
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Michael Lang
16 points