If you’re running a U.S. C-Corp (especially a Delaware entity) in the early-stage phase, every dollar matters. The fiscal year end is fast approaching—and with it comes your chance to perform a smart tax review that could significantly reduce your tax payment.
Think of this as your startup’s financial check-up: assessing what you’ve spent, what deductions you’ve missed, how you’re positioned relative to filings and deadlines—and then optimizing accordingly.
The annual corporate tax return (Form 1120) is due April 15 for most C-Corps. Missed planning now → fewer options later.
Many deductions and credits must be captured in the year incurred; waiting until next year may mean lost opportunities.
If you wait too long and filings or payments are late, penalties and interest begin to accumulate.
A tax review today helps you evaluate:
Have you accurately tracked deductible expenses?
Are you eligible for special credits (e.g., R&D) you haven’t claimed?
Are you on schedule for quarterly estimated payments (if required)?
Are you maintaining proper documentation to support deductions in case of audit?
Here’s a checklist of what your review should cover—based on our deep-dive into startup tax deductions. TaxHero AI
Startup & Organizational Costs: If you incorporated, did legal or market-research expenses occur before product launch? Up to $5,000 may be deductible in your first year.
Software, Subscriptions & Tools: All the SaaS tools, domain registrations, AI services—that’s legitimate deduction. Keep receipts.
Freelancers & Contractors: Did you pay more than $600 to a designer, developer, VA? That payment is deductible—but compliance matters (1099-NEC).
R&D Activities & Credits: Building software, prototypes, testing—if so, you may qualify for the R&D tax credit (even without profitability).
Home Office or Remote-Team Expenses: If you or your team work remotely, portions of rent, utilities, Internet, furniture may qualify.
Business Travel, Meals & Entertainment: Travel for investor meetings, conferences, meals with clients—all can be deductible if documented.
Equipment Depreciation: Bought laptops, cameras, mobile devices? Either deduct now (Section 179) or depreciate over time.
You may overpay taxes, missing out on deductions or credits you were eligible for.
You increase risk of mistakes in your filings (leading to penalties or audits).
You might lose the window for certain deductions or credits that must be claimed in the year incurred.
You may lack the documentation or categorization necessary if the IRS or state tax board audits your startup.
Gather Your Records – bank statements, accounting ledger, payment receipts, contracts, subscriptions list.
Categorize Each Expense – map to deductible categories referenced above; flag missing items.
Check Eligibility for Credits – e.g., R&D credit, Section 179 equipment deduction, home-office deduction.
Verify Filing & Payment Deadlines – ensure you haven’t missed quarterly estimated payments or state/franchise tax deadlines.
Document Everything & Set Up the Right Workflow – establish bookkeeping practices so you’re audit-ready next year.
As a startup founder, your focus should be building your company—not wrestling with complex tax rules. TaxHero supports you by:
Automated tracking and categorization of deductible expenses
Identifying potential missed deductions and credits
Preparing your annual Form 1120 and state filings accurately
Keeping you compliant and penalty-free
👉 Ready to start your Smart Tax Review? Schedule your consultation with TaxHero AI today or sign up now and start optimizing before the year-end.
Don’t wait until it’s too late—take action now.
Start your smart tax review with TaxHero and give your startup the tax advantage it deserves.
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