Our Two Cents

Some companies are better equipped than others for growth. The difference can come down to something as seemingly simple as business structure—not leadership vision, not go-to-market strategy, but the details of an incorporation document. Specifically, we’re talking about the distinction between an LLC and a C corporation.

If you own a startup, chances are good your business is structured as an LLC (short for limited liability company). Chances are also good your business could benefit from converting to a C corporation (AKA “C corp”).

Your business needs money as soon as possible. Like, today. Maybe a big order just came in and you don’t have the necessary supplies to fulfill it. Perhaps a major customer payment hasn’t arrived on time, or a tax deadline is approaching, or an expensive piece of equipment just broke down.

Like getting struck by lightning or dying in a plane crash, an Internal Revenue Service audit is as terrifying as it is unlikely. The IRS audits fewer than 1% of taxpayers every year. Nonetheless, there is always a remote possibility you’ll receive a notice that your tax return has been selected for examination.

If you’re one of the (un)lucky ones, don’t panic. Take a deep breath and do the following:

It’s time to bring your business to the next level. Maybe you’ve recently launched and sparked significant interest in the market, or maybe you’ve been building the company for several years and have recently achieved a sustainable pattern of growth and momentum. Whatever stage you’re at—whether you’re looking for seed capital, early stage funding, or later stage financing—you’re entering into serious discussions with potential investors.

• Do you know which investors are worth your time and energy?
• Are you able to pick out the worthwhile sources of capital and smart strategic partners from the crowd?

If you can’t, you risk not only wasting your own time, but potentially setting your business up for significant legal and financial instability.

 

Love money? So do we. In fact, you could say money is what we’re all about. At inDinero, we’ve made it our mission to help businesses like yours save and make money at every opportunity— with smart bookkeeping, accounting, and tax strategies. Rather than keeping everything to ourselves, we’ve decided to share some of our go-to secrets and techniques with our blog readers.

Welcome to inDinero’s Pot of Gold. In this series, you’ll learn quick, actionable tips to protect and build your company’s capital and personal finances. Whether your “pot of gold” is figurative or literal, these tactics will better enable you to maximize your wealth.

Today we’re sharing information about 83(b) tax elections. Learn how filing a relatively simple form now can save you serious cash later on:

After spending years building your business, you’ve started to think about a transition. Maybe you’ve been planning a business sale as part of your exit strategy since the beginning, or maybe a recent merger or acquisition in your industry or region sparked the idea. Perhaps you simply woke up one day and realized you were done running your company.

Getting your taxes filed on time is a lot easier when you a) have a year-round accounting system and b) have a clear deadline to aim for. By outsourcing your business’s accounting and taxes with inDinero, your covered on both fronts. In the article we’ll focus on the latter to help all business owners build a 2019 business tax calendar to keep up with filing responsibilities and avoid late penalties.

(Still working on your 2018 business taxes? Check out those dates in the 2018-2019 version of this calendar.)

Hate using your time to keep track of your business’s finances? You’re in good company. Many business owners consider bookkeeping, accounting, and tax filing the least enjoyable aspects of running their companies.

Yet countless business owners still manage their finances by themselves—not because they like punishment, but because they believe they’re saving money by doing so. Particularly for early-stage companies, an accountant or accounting department seems like a luxury that’s difficult to justify.

This belief frequently has little basis in reality. For a growing business, outsourced accounting can absolutely be worth the cost. By outsourcing your company’s books, you can save money on taxes, make better use of your and your team’s time, and gain the perspective you need to more effectively communicate about your organization and your vision.

Here are a few reasons outsourced accounting is worth the cost:

Burn rate is a matter of life and death—startup life and death. It’s the difference between companies that survive for years and those that shutter within months. It’s a critical metric for any investor considering supporting your business. And it’s frequently misunderstood and underestimated by the people who should be paying attention to it most.

Here’s what you need to know about burn rates, including what they are, why they matter, and how to calculate yours—and determine if it’s where it should be.

 

Congrats! You’ve begun exciting process of launching a new startup. So, what's next? Well, it's time to prepare yourself for a lot of decision making, decisions that can directly impact how successful your company is in the future. If you’re looking to grow your business in the coming months—and let’s be real, who isn’t looking for that—this is the time to be intentional, to get laser-focus on building a strong foundation that empowers you to handle any uncertainties that inevitably will arise.

This is easier said than done, especially for a new business that might be dealing with limited funds and even less time. To help you get started, we’ve got some basic strategies to creating an organized, structured approach for future expansion and growth.