R&D Tax Credits for Startup Companies

Startup Companies

Startup companies have been shutout in the past from obtaining R&D tax credits due to lacking tax income liabilities. Thanks to a 2016 provision made to the credit broadening the variety of industries that are able to qualify, startup companies are able to reap the benefits of R&D for their efforts in creating their processes, products, and processes.

Our experts will work with your company to offset as much as $250,000 of the costs spent performing innovative research activities against payroll tax liabilities. This allows new companies to invest money and time into the development of their products, processes, or software even before they begin generating an income.

How can startups qualify?

  • Startups must have gross receipts of less than $5 million for the tax year that they’re filing for R&D Tax Credits
  • Startup must have gross receipts for five years or less. Business cannot have any gross receipts further back than 5 years
  • Startup cannot be a tax-exempt organization under section 501

We will document all research activities and ensure the proper steps are taken to reap the maximum amount of credits possible. 

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Let us assess if your research activities pass the IRS 4-Part Test.
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