Tax Planning for Entrepreneurs in NYC
What We Focus On
-
Startup Cost Deductions — The IRS lets you deduct up to $5,000 of startup costs in your first year and amortize the rest over 15 years. We make sure those expenses are properly captured and classified before you file.
-
R&D Tax Credit — If you’re building software, developing a product, or improving a process, the federal R&D credit (and New York’s own credit) can offset a real chunk of tax liability. Startups under $5M in revenue can apply it against payroll taxes.
-
Entity Timing & Structure — When you incorporate and what you elect matters. Form your LLC in December but don’t file the S-Corp election until March, and you’ve created an unnecessary short tax year. We coordinate the timing.
-
Investor & Equity Reporting — Cap table management, QSBS eligibility tracking (Section 1202), and K-1 preparation for investors and partners.
-
Founder Compensation Planning — Setting a reasonable salary, structuring distributions, and coordinating equity compensation so the tax bill isn’t a surprise.
Why Tax Planning Matters Early for NYC Startups
The decisions you make in your first year of business lock in consequences for years to come. Pick the wrong entity and you’ll pay unnecessary self-employment tax. Miss the S-Corp election deadline and you’re stuck for another year. Ignore QSBS eligibility rules and you could lose a tax-free gain exclusion worth millions down the road.
New York adds its own wrinkles. The city’s UBT applies to unincorporated businesses, which means some entity structures cost more here than in other states. The PTET election — New York’s pass-through entity tax — gives S-Corp and partnership owners a workaround for the federal SALT cap, but only if you opt in and make the right estimated payments on time.
We’ve worked with founders who came to us after raising their first round, and we’ve worked with solo operators bootstrapping from a studio apartment. The tax questions are different at each stage, but they all benefit from getting the structure right before the complexity piles up.
Ready to Get Started?
Tell us where your business stands and we’ll map out a plan that fits.