Common Tax Mistakes Startups Make

I love this blog post from Upstart Business Journal with 7 common tax mistakes US-based startups make.  And even though the post was from December 2012, the concepts and recommendations are so fundamental that I doubt they would change much year to year.  You can find the post here.  Their list includes the following:

  1. Choosing the wrong legal entity
  2. Not understanding your tax obligations
  3. Not asking for professional tax help
  4. Blending business and personal finances
  5. Not deducting business expenses
  6. Not using the right tools
  7. Not paying quarterly taxes

Get some good advice from a professional in the beginning.  Unwinding or correcting for some financial-related or tax-related mistakes can be a serious distraction and even risk your odds of fundraising.

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Author: Gordon Daugherty

Over the past 15 years Gordon has seen more than 1,500 startup pitches, given personal advice to more than 500 entrepreneurs and been involved with raising over $45M in growth and venture capital. Throughout his 28 year career in high tech, Gordon has two IPO’s and a $200M acquisition exit under his belt. Now, through his advisory practice called Shockwave Innovations and as Managing Director for Austin’s Capital Factory startup accelerator, Gordon’s focus is purely on educating, advising and investing in tech startups.

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