The Smarter Startup

Startup Tax Preparation Resources for 2021


A roundup of the year's best startup tax preparation resources from Burkland. Tax cost and credit calculators, key tax deadlines, and more.

A new tax season is underway, and Burkland’s startup tax accountants are working with our clients to prepare. In this article, we share a roundup of helpful 2021 tax preparation resources for startups.

1. 2021 Tax Deadlines for Startups

When are my taxes due in 2021?

Each quarter of 2021 has important tax deadlines to prepare for, starting with 1099 and W2 deadlines on January 31.

See Burkland’s full calendar of important tax deadlines in 2021.

  1. U.S. Federal Tax Deadlines
  2. San Francisco Tax Deadlines
  3. New York Tax Deadlines
  4. Seattle Tax Deadlines

2. Tax Updates from the Second Covid Relief Bill

How will the December 2020 Covid relief bill impact my startup’s taxes?

On December 21, 2020, U.S. Congress passed the Consolidated Appropriations Act, which includes the second Covid relief package. Burkland’s head of Tax Services Ardy Esmaeili, CPA, joined a recent episode of our Startup Success podcast to share a tax update from the bill.

Listen to the podcast to learn about important tax ramifications for startups within the second Covid relief bill.


3. Startup Tax Preparation Cost Calculator

How much should tax preparation cost my startup business this year?

Tax preparation costs for your startup will be influenced by factors including:

  1. Your entity type
  2. The number of partners in your startup
  3. The number of states and countries in which you operate

Receive an instant tax preparation cost estimate for your startup with Burkland’s Tax Preparation Cost Calculator.


4. R&D Tax Credit Qualifications

Do my startup’s R&D expenses qualify for federal tax credits?

The Credit For Increasing Research Activities (R&D Tax Credit) allows companies to deduct many expenses related to research and development.

Qualified expenses for the R&D Tax Credit are:

  1. Wages
  2. Supplies
  3. Contract research
  4. Cloud computing

Learn more about which expenses qualify for the R&D tax credit. This article also provides a list of the ten main non-qualifying activities for the R&D Tax Credit.


5. R&D Tax Credit Calculator

How much could my startup save with the R&D Tax Credit?

Your startup may be eligible to deduct up to $250,000 in R&D expenses from your payroll tax or income tax.

Get a quick idea of your potential tax savings with Burkland’s R&D Tax Credit Calculator for Startups.


6. Taxes & Remote Workers

What are the tax implications created by remote workers?

COVID-19 accelerated remote working, and many employees have moved out of their employer’s state in the past year. Although remote work has some benefits for both employees and employers, many businesses could be overlooking important tax implications.

Important tax implications of remote work relate to:

  1. State payroll withholding tax
  2. State and local labor and employment laws
  3. Nexus

Get to know the important tax implications created by remote workers.


 

Startup tax preparation is complicated. Burkland’s team of tax advisors can review your specific situation and make recommendations for our tax clients. Contact us for more information.