A CPA for your startup's next stage.

Bootstrapped and funded startups need different plans

The business model, owners, financing plan, and expected profit should shape the engagement. An owner-operated business distributing profit and a funded company issuing equity do not need the same tax structure or reporting priorities.

We start by understanding the company and the founder's role. An LLC is a legal form; S corporation treatment is a tax election. Neither is a default answer for every startup. Entity and equity decisions also require coordination with your attorney.

How to choose a CPA for a startup

Look for an engagement you can describe in deliverables. A firm that says it handles everything should still explain who owns payroll, equity records, state filings, return preparation, and questions between meetings.

Taxstra brings accounting and proactive tax planning into the same conversation. We serve clients remotely nationwide, led by Bryan Martin, CPA, MBA. If the work needs specialized legal advice, an audit opinion, valuation, or other services outside our agreed scope, responsibilities should be explicit.

• Ask who will review the work and who will answer questions as the company changes.
• Ask how books, company returns, and founder returns will be coordinated.
• Ask what happens when you hire in another state or change ownership.
• Ask to see a proposed close calendar and reporting package before comparing fees.
• Ask which projects are excluded, including historical cleanup, valuation, assurance, or financing work.

• Meet Bryan Martin, CPA, MBA
• Questions to ask before hiring a CPA

What we can coordinate for founders

Your proposal identifies the company and individual work, states, filing obligations, reporting cadence, and planning support. We avoid treating the entity election as the end of the relationship.

• Startup bookkeeping from the first reporting period
• CFO support for startup cash and reporting decisions

Example: fund the runway before expanding payroll

A hypothetical startup has $240,000 cash and spends $40,000 more than it collects each month. On those simple assumptions, cash covers six months. A proposed hire adds $12,000 in monthly cash outflow, reducing that simple runway to about 4.6 months.

That is a starting question, not a complete forecast. The model must account for the hire date, collections, payroll taxes and benefits, payment commitments, and any restricted or unavailable cash. Financing is not treated as cash until its timing and terms are supportable.

The accounting engagement supplies reliable balances. A separately scoped CFO engagement can model the decision. Keeping those responsibilities clear makes a quote easier to compare and prevents a monthly bookkeeping package from being mistaken for unlimited financial analysis.

• Build a cash forecast from dated receipts and payments

Review deadlines without assuming every mistake is permanent

Restricted-property elections, entity elections, returns, and estimated payments follow different rules. Bring the actual agreements and dates; a general checklist cannot decide your filing deadline.

A Section 83(b) election generally must be filed within 30 days after the property transfer. The transfer date and the nature of the property matter. Do not assume every equity award is eligible or that its grant date is always the relevant transfer date.

A late S corporation election does not automatically mean the entire year is lost. IRS relief procedures can apply when their requirements are met. We evaluate the facts, eligibility, reasonable cause, and reporting history rather than promise relief or assume none exists.

• Understand the Section 83(b) election
• Late S corporation election relief
• Research-credit eligibility and documentation

What the first quarter should establish

Begin with an inventory of entities, owners, prior filings, bank accounts, payroll, and equity documents. Identify unresolved items before agreeing that the books are ready for recurring reporting.

The work plan then assigns the opening balances, close process, filing calendar, information requests, and management review. A founder should know which items are complete, which await documents, and which need another specialist.

• Company formation and ownership records, financing agreements, and equity documents.
• Recent financial statements, reconciliations, payroll reports, and tax returns.
• Business locations, employee locations, and state registrations.
• A short list of decisions and dates: hiring, distributions, an election, a raise, or a transaction.

A startup CPA fee should describe a scope

Fees depend on entities, founder returns, states, payroll, equity complexity, research-cost work, reporting needs, and the condition of the books. We discuss a defined scope before quoting.

This service is generally a better fit when there is revenue, funding, payroll, or meaningful tax complexity to manage. A pre-revenue idea seeking only free incorporation advice may be better served by the educational guides and a focused legal consultation first.

The free initial call establishes fit and the next step. It is not a completed entity analysis, equity review, research-credit study, or tax return.

• Understand CPA fee drivers
• Read the startup tax guide

Questions before working together

Sources and further reading

• IRS: Late S corporation election relief
• IRS Form 15620: Section 83(b) election
• IRS: Choosing a business structure

Discuss your next decision with Taxstra

Book a free 30-minute consultation with our team. Tell us what you need, learn how Taxstra can help, and explore whether our services are a good fit. Tax advice, document reviews, and analysis require a paid engagement.

Open the booking page