Tax

Introduction

When Ben Franklin noted, “in this world nothing can be said to be certain, except death and taxes”, he was unaware of the myriad stimuli, credits, loopholes, havens, and incentives his successors would dream up. It can be difficult for entrepreneurs when multinationals make headlines for avoiding all taxes, but for biotech startups, where the R&D tax credit rules, well, it could be worse.

What

Engaging a tax professional (typically part of your accounting team) early and explaining your business plan is the best path. Then s/he will advise re: what types of information are required and when. Attempting to navigate Federal, State, and local tax laws is not the best way to spend your time when building a business.

When

At least 6 months before your first tax filing is due.

Why

Criminal and civil penalties. If that’s not enough, errors can have severe impacts on your cash position, or bankrupt a firm.

Learning Goals

How to identify and work with your tax accountant.