Your chosen tax year dates are normally Jan-Dec unless you specific asked for it to be something else in your EIN application (SS-4). - for example Apr-Mar is common for those with Indian subsidiaries to match the underlying India tax year. You can check your chosen US dates in your SS-4 (field 12)or your EIN issuance letter (paragraph 3). Depending on your chosen tax year dates, and only if you want a 6-month extension to your corporate tax deadline, you will need to file the Form 7004 either by 15th April (if your tax year is Jan-Dec) or 15th Jul (if your tax year is Mar-Apr). This buys you a 6 month breather.

While the Delaware Franchise Tax Calculator can offer a reasonable estimate of your tax obligations, it's essential to remember that it may only account for some possible scenarios or nuances in Delaware's tax laws. For precise tax estimates, especially for complex business structures, it's advisable to consult with a tax professional familiar with Delaware tax regulations.

We offer post-incorporation maintenance services, including compliance tracking, bookkeeping assistance, and tax filing support for US entities. Inkle doesn't maintain Indian entities, but we'll connect you to partners that do.

Yes, there are income limits and phase-out ranges for claiming the QBID. The limits can vary based on filing status and taxable income.

Yes if your US corporation had a foreign subsidiary at any time during the concerned tax year.

US-as-a-parent: LLPs take about a month to create (formation, getting a bank account, starting the ODI process). Then the paperwork for the US parent takes just minutes to handle. Subsequently setting up a wholly owned subsidiary in India (a private limited company) takes about another month or so.

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US-as-a-subsidiary: setting up a India Private Limited (Pvt Ltd) company takes a few weeks to do fully. The US subsidiary just takes a few minutes. Wiring the ODI payment from the Indian parent to US subsidiary takes a week or two more.

Inkle is ideal for:

• Early stage to growth stage startup founders looking to streamline their finances.
• Businesses that need to stay compliant with tax regulations.
• Small and Medium-sized Businesses (SMBs) needing real-time financial insights.

You can complete Form 2553 by providing information about your corporation, shareholders, and the S corporation election. The completed form is then submitted to the IRS.

Nil return means your US Corporation has no transactions in the concerned tax year.

Considering a bookkeeping service is an intelligent choice if you're looking to save time and money. Discover how professional bookkeeping can help streamline your finances with Inkle.

Corporations must provide detailed financial data, including gross receipts, deductions, credits, and other pertinent details essential for calculating net income and tax liability.

Yes Inkle has already partnered with dozens of Indian CA/CS firms to help them help their clients with US+India incorporations. Inkle outsources India work to Indian professionals, so there is no overlap.

Auto-categorization may not be working for several reasons:

• Unrecognized Transaction Descriptions: The system might not recognize certain transaction descriptions or vendor names. Ensure your transactions have clear and consistent descriptions.
• Rule Misconfiguration: Review your categorization rules to ensure they are set up correctly and apply to the appropriate transactions.
• Data Sync Issues: Check if there are any issues with data synchronization between your bank accounts and Inkle Books. Ensure all accounts are correctly linked and updated.
• Custom Categories: If you have custom categories or exceptions, ensure these are configured properly within your settings.

If auto-categorization issues persist, consider reaching out to Inkle Books’ support team for further assistance.

Individuals employ Form 1040 to file personal income taxes, whereas C corporations utilise Form 1120 for corporate tax returns. The primary distinction lies in the taxpayer type: 1040 is for individuals, and 1120 is for corporations.

There is a flat 0.25% forex markup fee on live mid-market rates. There are no other hidden fees, such as flat fees or GST deductions. Since we don't charge a flat fee, GST is not applicable.

The burn rate is calculated by taking the total expenses incurred over a specific period and dividing it by the number of months in that period. For example, if your monthly expenses are $20,000, your burn rate is $20,000 per month.

The runway is determined by dividing your current cash balance by the monthly burn rate. If you have $100,000 in cash and a burn rate of $20,000 per month, your runway is 5 months. This means you have 5 months of operational funds left before needing additional capital.

No, it also includes compliance. You can pre-fix the purpose code and download e-FIRA for free from the dashboard to claim GST exemptions.

If you overpay your estimated taxes, you can apply the overpayment as a credit toward your next year's estimated taxes or request a refund when you file your tax return.

Filing Form 926 is crucial because it allows the IRS to monitor and track investments made by C corporations in foreign entities, ensuring compliance with tax laws.

Yes, both Form 8938 and FBAR might be necessary since they serve different purposes and have separate reporting thresholds. While FBAR has its requirements, Form 8938 is part of your annual tax return and may need to be filed, even if you're already submitting FBAR.

Foreign corporations conducting business in California must file Form 100 if they earn income from sources within the state.

No, the batch deadlines are only for founders. Investors will stay in out database and receive all batches.

US VCs and angels often don't get India-based dealflow without feet on the ground, and because India founders don't reach out to you. Inkle Raise fills that gap, providing a liquid platform for receiving vetted and curated pitches from quality early stage teams that you probably haven't heard of before.

You can find Form 2553 and its instructions on the official IRS website. Additionally, tax professionals and software can guide you in completing the form.

Some exceptions and rules may apply, especially for entities like trusts and tax-exempt organisations. Consult Inkle today for entity-specific guidance.

The updated IRS electronic filing mandate has significant implications for businesses employing independent contractors. While many companies are accustomed to electronically filing W-2 forms, the inclusion of 1099-NEC forms, typically used for freelancers and 1099 workers, into this process is a new requirement. Businesses with many independent contractors must now develop standardized procedures for filing 1099-NEC forms to maintain organized records, including tax verifications and invoices, for smooth filing at year-end.

The change from a 250-return threshold to just ten is considerable, affecting many businesses that previously relied on manual filing methods.

This oversight can lead to compliance risks and unregulated spending. With the new mandate, it becomes crucial for businesses working with independent contractors to maintain a comprehensive overview of all 1099-NEC forms required for end-of-year filing.

To adapt, companies may need to assign specific roles, possibly within human resources, to manage independent contractor engagements. This would ensure consistent onboarding and payment processes across the organization, facilitating accurate reporting at the end of the year.

Additionally, implementing automated and centralized systems could significantly reduce administrative workload and the likelihood of manual errors.

Just put your new address on your new Tax Filing, and they'll update their systems. Or see here for other methods: https://www.irs.gov/faqs/irs-procedures/address-changes/address-changes

You can find Form 1040-ES and its instructions on the official IRS website. Tax professionals and tax software like Inkle can also guide you in completing the form.

Yes, there are exceptions based on ownership thresholds and specific circumstances. It's essential to review the IRS guidelines to determine if you meet the criteria for exemption from filing Form 5471.

Inkle Books prioritizes the security of your financial information with robust measures. The platform uses encryption to protect data both in transit and at rest. Additionally, Inkle Books complies with industry-standard security protocols and offers multi-factor authentication (MFA) for added security. Regular security audits and updates ensure that your financial information remains safe from unauthorized access.

Click on the "Get My Referral Link" button. You will be redirected to the Inkle app, where you will be able to copy your referral link & share it with your community.

Yes, based on the complexity of a corporation's finances, additional schedules like Schedule R, Schedule K, and others might be required with Form 100.

C corporations can electronically file Form 926 through the IRS's Modernized e-File (MeF) system.

Indian FEMA residents may not directly hold control-level stock in any foreign corporation if that foreign corporation is going to have a step-down subsidiary anywhere in the world. The founders must hold their foreign stock through a personal Indian LLP (Limited Liability Partnership) or RP (Registered Partnership) vehicle in India. Think of this LLP or RP as the "personal family office" of each founder. So each LLP/RP would contain only the founder and her/his family member, not any other co-founder.

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To elect S corporation status for a tax year, Form 2553 generally must be filed two months and 15 days after the beginning of that tax year.

We enforce stringent password security policies and MFA (Multi-factor Authentication) based access for all our employees via a central active directory. We strictly monitor access to customer data and only permit it on an as-needed basis.

Electing S corporation status can offer tax advantages, including pass-through taxation and avoiding double taxation on corporate income.

If you don’t have a Mercury or Brex account, you can still connect your bank account to Inkle Books using Plaid, a secure financial data aggregator. Simply navigate to the “Data Sources” section in Inkle Books, select “Connect,” and click on “Other banking institutions” in the connect modal. Follow the prompts to connect your bank via Plaid.

Plaid supports over 12,000 US financial institutions, so you should be able to link your bank account without issues.

If you have a Delaware C-Corp which was in existence during any calendar tax year (1st January to 31st December), then yes you must file the Annual Report and pay the Delaware Franchise Tax. This is going to cost you a minimum of $400 tax + $50 government filing fee, and possibly much more if you've raised in the millions.

You can seek assistance from tax professionals, use tax software like Inkle, or refer to the IRS website for guidance and resources on completing Form 8995 and understanding the QBID.

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You can make electronic payments for Form 1040-ES through the IRS's Electronic Federal Tax Payment System (EFTPS) or by credit/debit card.

The Delaware Franchise Tax Calculator is a tool designed to help businesses estimate their franchise tax obligations to the state of Delaware. It typically works by inputting relevant financial information, such as the number of authorised shares and gross assets, and then calculating the expected tax amount based on Delaware's franchise tax regulations.

Generally this is the bulk of software development expense, which is often in the form of software engineer salaries. However, you can exclude the time they spend on maintenance (such as support and bug fixes).

Yes, you may still be able to claim the QBID even if you have W-2 wage income, but some limitations and calculations take W-2 wages into account.

Our panel will systematically review pitches and curate a cohort of ambitious companies to showcase.

Notification of your selection status will be provided by Inkle by 31st Dec 2023.

If selected, you will be introduced on a double opt-in basis to the investors who wish to meet you.

If not selected, you are welcome to pitch again after further progress.

It's best to do a tax consultation with our certified professional tax experts who can help you determine the answer.

As a general rule of thumb: if you don't have a formal physical office, permanent employees in attendance, stock or inventory and business operations, then you won't need to file a State return. This is even if your US company address is located in that state. Basically: it depends on what you're doing in the state.

We use the Advanced Encryption Standard (AES) algorithm with a key size of 256 bits and with a unique and proper encryption key rotation policy for each customer.

No fees to participate.

Instead of a full deduction of the R&D expenses upfront in the year it was incurred, you'll now have to spread (amortize) them over 5 years (US R&D) or 15 years (foreign R&D).

Indian FEMA residents who wish to set up a US parent or subsidiary. Such founders may be all India residents or "mixed groups" (where one or more of the founders is India-resident, and one or more is not).

FEMA residency is a complex matter but the overall definition is: "The residential status under FEMA follows the main criteria that if an individual is in India for more than 182 days during the preceding financial year, he/ she shall be considered a Person Resident in India." More detailed discussion is required to establish the FEMA residency status of individuals, as there are other clauses which must be considered.

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In 2022, all companies that have foreign ownership or interests exceeding 10% at the end of the year are required to submit BE-12. This requirement applies to e-commerce platforms involved in digital product distribution as well as partnerships that hold real estate for non-personal purposes.

In such cases, you need to rectify the mistake by amending the form. Utilise Form 1120X, the Amended U.S. Corporation Income Tax Return, for this purpose. Form 1120X must be submitted within three years from the original return.

To complete Form 1120X, you'll need the following information:

1. Business name
2. Explanation of changes
3. Business address
4. Details on payments and credits
5. Data on income and deductions
6. Tax amount due or overpayment
7. Employer Identification Number (EIN)
8. Signature

All reporting companies should include the following information in the Beneficial Ownership Information report -

Reporting Company Details:

1. Legal name
2. Trade names
3. Current U.S. business address
4. Jurisdiction of Formation
5. Taxpayer Identification Number (TIN) or foreign-issued tax identification number and issuing jurisdiction.

Beneficial Owner Details:For each beneficial owner, the reporting company must provide:

1. Name
2. Date of birth
3. Residential address
4. Identifying numbers from an acceptable ID document (e.g., passport or U.S. driver's license) and the issuing state or jurisdiction. (Include a copy of the identification document used for obtaining the identifying number).

Company Applicant Details:Only applicable for companies incorporated on or after 1st Jan 2024. For each company applicant, the reporting company must provide:

1. Name
2. Date of birth
3. Address
4. Identifying numbers from an acceptable ID document (e.g., passport or U.S. driver's license) and the issuing state or jurisdiction. (Include a copy of the identification document used for obtaining the identifying number).

Generally, foreign real estate isn't reported on an FBAR except when held through a foreign financial account like a foreign bank account, where exceptions may apply.

Yes. Inkle has built Inkle Practice specifically for non-US CA/CS and law firms to access the platform and collaborate with our shared customers.

Generally, income from eligible businesses, including domestic partnerships, S corporations, sole proprietorships, and certain real estate activities, may qualify for the deduction.

Detailed reporting on foreign corporation ownership, finances, operations, including key data, related-party transactions, and essential info.

Yes, our platform adheres to the SOC2 Type 2 security framework. We undergo regular third-party audits to maintain compliance and improve our security practices.

C Corporations must file Form 7004 on or before the original deadline of their tax return Form 1120, which is by the 15th day of the 4th month after the taxable year ends.

The deadline for C-Corporations following the calendar tax year is April 18, 2023.

The exempted companies that do not need to file BOI are:

• Big operational companies with over 20 full-time employees in the United States maintain a physical office presence in the US and have filed a federal income tax or information return demonstrating gross receipts or sales exceeding $5 million in the previous year.
• Companies involved in investments, along with advisors for investments and venture capital funds, are officially registered with the Securities and Exchange Commission (SEC).
• Pooled investment vehicles operated or advised by specific financial entities.

Delaware is tax-friendly due to no sales tax, business-friendly tax laws, and favourable corporate income tax rates.

We invite high-quality, active investors of various kinds, including VCs, angels, scouts and syndicates.

We ensure that data is backed up across multiple locations and can be retrieved within our recovery time objective if a failure does occur.

Additionally, we have a tested and detailed business continuity and disaster recovery plan in the event of a major disruption to one of our key service providers.

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Due to the high volume of submissions, we regretfully cannot offer personalised feedback on individual pitch submissions. Nevertheless, you can enhance your pitch or prepare for future submissions by participating in our expert sessions or exploring our published content on our blog.

Providing false information or failing to report/update beneficial ownership may lead to penalties. Civil fines are $500 per day, and criminal penalties include fines up to $10,000.

If a report with inaccurate information is filed without the reporting company's knowledge, there's a 90-day safe harbor to submit a corrected report.

Both are trusted incorporation partners, but they offer different features:

Clerky – Best for founders needing flexibility in share issuance, add-ons like SAFEs and stock plans, and an attorney collaboration portal.

Stripe Atlas – Best for ease of use, fixed share issuance, and perks like cashless founder stock purchase and massive Stripe discounts.

Some specific exceptions and exemptions exist for certain types of transactions and entities. For example, certain de minimis transactions may be exempt from reporting.

Form 8995 provides a step-by-step calculation process to determine the QBID. It involves determining your qualified business income, limitations, and other factors.

You can get Form 1099 from the IRS website, request it from the IRS, or use tax software like Inkle for assistance.

Inkle Books offers a variety of financial reports to help you manage and analyze your business finances. These include:

• Income Statements: Show your company’s revenues, expenses, and profits over a period.
• Balance Sheets: Provide a snapshot of your assets, liabilities, and equity at a specific point in time.
• Cash Flow Statements: Track cash inflows and outflows, helping you understand your liquidity.

For more information or if you have further questions about the program, you can reach out to the Inkle support team through Chat within the platform.

No. It's free.

Inkle offers a flat fee revenue-sharing model based on the volume of referrals and the services your clients use. Apply to learn more about your earning potential.

Bookkeeping is crucial to small business management, irrespective of growth plans. Understand how it not only tracks finances but also aids in accurate tax filings.

No, Form 2553 is typically for corporations. However, some states allow LLCs to elect S corporation status for federal tax purposes.

You may need one, the other, or both. FBAR is filed with the Financial Crimes Enforcement Network (and is based on calendar year), whereas Form 8938 goes to the IRS as part of your federal tax filing (and is based on your chosen tax year). FBAR is judged based on foreign balances controlled by your US entity's foreign accounts or its controlled entities foreign accounts, whereas Form 8938 is judged based on a threshold of specified passive income. See here for more details: https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

For your 2022 tax year and beyond, your taxable income might increase, possibly leading to due taxes even if you think you were loss making.

If a business fails to e-file information returns like Forms W-2 and 1099-series when required, it may face penalties as outlined in IRC Section 6721. These penalties can be imposed for not filing electronically and for late filing or submitting returns with incorrect information.

In 2023, the potential penalty can reach up to $310 for each return, with a yearly cap of $3,783,000. However, for smaller businesses with annual gross receipts not exceeding $5 million, the maximum penalty is limited to $1,261,000. These penalty amounts are subject to annual adjustments based on indexing.

Additionally, hardship waivers are available for those who would encounter significant difficulties meeting the e-filing requirements.

Obtain a 409A valuation before issuing your initial common stock options, after completing a round of venture financing, annually or after a significant event, and when approaching an IPO, merger, or acquisition.

FBAR requires reporting on various foreign financial accounts, including bank and investment accounts, and certain foreign retirement or pension accounts if they meet the reporting threshold.

If you have paid a US resident contractor or an LLC as a contractual payment or rent, during the Concerned Tax Year, then yes you must file a Form 1099 by 31st January of the following year annually. One filing per person/LLC. If you've missed the deadline, discuss with us how to proceed.

Stripe for US entity formation.

Inkle for India entity formation.

Stripe Atlas handles the US entity incorporation (Inkle can give guidance, although Atlas is actually a self-serve platform). Inkle handles the India entities formation through our network of partner CA/CS firms in India.

The Inkle Ambassador Program enables partners to earn a flat fee on referred customers. We provide the materials and resources you need to succeed.

Delaware Franchise Tax Calculators are freely available online. However, it's essential to ensure you're using a reputable and accurate calculator provided by a trusted source, such as the Delaware Division of Corporations or reputable financial websites.

Yes, IRS permits electronic filing using the Electronic Tax Administration system, offering convenience and extended deadlines.

Various factors influence the cost of bookkeeping services, from business size to required features. Find out about pricing structures, with options ranging from monthly fees to hourly rates with Inkle.

Form 1040-ES estimates and pays your federal income taxes if you are not subject to withholding, such as self-employed individuals or those with significant additional income.

A Transfer Pricing Benchmarking Study is conducted to determine the margin rate for transactions between the related parties. It is required annually from the second year of starting such transactions. A Transfer Pricing Audit (Form 3CEB) is a mandatory annual report that companies engaging in Transfer Pricing must file with the Indian tax authorities. Inkle can help you with both of these processes through our network of empaneled CA firms.

We open a Virtual Account with JP Morgan Chase for your Indian entity. You need to make a domestic wire from US Bank A/C to this Virtual Account, and then funds are credited in INR in Indian Bank A/C after currency conversion. Funds do not touch Inkle anywhere.

Tax laws and forms can change from year to year. It's essential to check the latest IRS instructions and publications for any updates to Form 8995.

It's good practice (but not mandatory with Inkle).

In our experience, many founders tend to just "leave it to the deadline" - and then rush or miss the deadline. And they have little visibility into their books at any given time.

If you come to us days before the deadline, it's really tough for us to catch up your books if you have lots of transactions and missing invoices. And almost impossible to use Accrual method. So we'll be forced to used Cash method accounting, which isn't ideal for you.

Many US tax filing services compel you to pay a high monthly bookkeeping charge of more than $500/month and subscribe to Quickbooks, even if you have low activity at the start. We have fair pricing and nudge you for monthly bookkeeping because it's better for you, and it will cost you about half of the total monthly cost over 12 months in terms of annual cleanup anyway. Why not have monthly visibility instead.

Book a meeting using the button at the top of this page, and we'll get you started.

A beneficial owner is an individual who either directly or indirectly:

1. Owns or controls at least 25% of the reporting company’s ownership interests.
2. Exercises substantial control over the reporting company.

An individual is considered to exercise substantial control over a reporting company if they:

• Hold a senior officer position (e.g., president, CFO, general counsel).
• Possess the authority to appoint or remove specific officers or a majority of directors.
• Serve as an important decision-maker for the company.
• Exercise any other form of substantial control over the reporting company.

Regardless of taxable income, every US-based domestic corporation must file tax Form 1120. 

The following entities fall under the obligation to file tax Form 1120:

1. Businesses opting for corporate taxation. These businesses must also complete Form 8832 and include a copy of Form 1120.
2. Limited liability companies (LLCs). LLCs file Form 1120 only if they've chosen corporate taxation. Partnership LLCs use Form 1065, while single-member LLCs typically file taxes through the owner's personal federal tax return.
3. Farming corporations. They are required to file Form 1120 to report their income/losses.
4. Corporations with an ownership interest in a FASIT (Financial Asset Securitization Investment Trust).
5. Foreign-owned domestic disregarded entities. If a foreign entity owns 100 percent of a domestic disregarded entity (D.E.), the D.E. is treated as separate from its foreign owner. The foreign entity must file Form 1120 and attach Form 5472.

Additionally, some types of corporations may need to complete additional forms, such as Form 1120 (Schedule N), for foreign operations in the U.S. Small corporations might not be required to fill out these additional forms. You can locate them by searching for "Form 1120" using the IRS Forms and Publications tool.

You can use the worksheet with Form 1040-ES or online calculators to estimate the amount you should pay. It's typically based on your expected annual income and deductions.

Inkle Books allows you to track payroll by integrating with payroll services or manually entering payroll data. If you use a payroll service, connect it through available integrations to automatically sync payroll information. For manual entry, record payroll expenses under the appropriate categories, ensuring accurate tracking of wages, taxes, and other deductions. You can also use Inkle Books’ reporting features to generate payroll summaries and review compensation costs.

We provide an option to delete customer data upon request and will ensure that the data is erased within a set timeframe.

Our team will assist you every step of the way. Before we kickstart your incorporation process with Inkle, please prepare the following information:

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• Brand Name: what will your brand name be? It's perfectly fine (and normal) for this to be completely different to your various entity names. Check that there is no US/India trademark violation or similar-named entities.
• Entity name/s: decide on the entity names (follow the specific regulatory requirements).

Rewards are processed once your friend completes their first service with Inkle. Payments are typically processed monthly.

Yes, a 409A valuation can and should be updated if there are material changes in your company's financial situation or other significant events.