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.

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

No. Once access is shared, payroll reports come through each cycle. The review happens at financial closing, alongside your other accounts.

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.

Yes. Operating, savings, and any accounts holding fundraising proceeds can all sync, and each appears separately on the Reconciliations dashboard with its own reconciliation status.

No, our assisted service eliminates the need for expensive legal consultations. However, if you need legal advice, Clerky offers an optional attorney collaboration portal.

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

Because it's already an expense and already a liability. Under accrual accounting, an invoice dated 3 March is a March expense even if you pay it on 2 April. Recording only the payment shifts that expense into the wrong month and hides what you owe in the meantime. Investors and your CPA both expect to see payables on the balance sheet.

Indian CA/CS/law firms can direct their customers to this page, or handle the process for them end-to-end. We will need certain documents/details from the founders, which can be routed through you.

Required if US corporation did any reportable transactions at any time during tax year AND has any 25%+ foreign shareholder. See here https://www.irs.gov/instructions/i5472

Yes. You authorise on the bank's own login screen, so Inkle never sees or stores your credentials, and the connection is read-only. We can read transactions into your books but cannot move money. Revoke access from Data Sources whenever you want.

Yes. You authorise on Mercury's own screen, so Inkle never sees or stores your credentials, and access is read-only. We can read transactions into your books but cannot move money. Revoke access from Data Sources whenever you want.

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.

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.

Professional bookkeepers handle end-to-end financial management, including categorizing transactions, reconciling accounts, managing payables and receivables, and closing books monthly.

Contractor payments through Gusto come across alongside W-2 payroll and are categorised separately, which matters at tax time when 1099 filings are due.

BE-12 is a survey conducted by the Bureau of Economic Analysis every five years to collect data on foreign investment in the US. US businesses with foreign ownership or control must participate.

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).

Because it shouldn't. Stripe deducts processing fees before paying out, and batches charges into payouts on a delay, so a $1,000 day in Stripe might arrive as $971 two days later. Recording only the deposit understates both your revenue and your expenses. Inkle Books records the charge gross, the fee as an expense, and matches the payout to the charges behind it, which is what accrual accounting requires and what investors expect to see.

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.

Partners receive earnings on a monthly basis.

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.

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.

Form 8995 is used to calculate and claim the Qualified Business Income Deduction (QBID) for individuals, estates, and trusts.

Filed with US Treasury within 45 days of stock issuance when a foreign person acquires a US business.

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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Inkle's panel vets each startup on primary factors which all investors look for, such as team, market size, macro themes, product, disruption, progress. We do not conduct any due diligence or recommend investments. Investors do this themselves.

Search for it in the Plaid flow when you connect. Coverage spans over 10,000 US banks and credit card providers, including most national banks, regional banks, credit unions, and card issuers.

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.

Vendor records sync across, and the financial closing checklist prompts you to review new vendors added during the period, including checking for duplicates. If the same vendor exists under slightly different names in each system, that's where you'll catch it.

Limited liability companies (LLCs) that have chosen corporate taxation. Partnership LLCs file Form 1065, while single-member LLCs typically report taxes through the owner’s personal return.

LLP: 2-3 weeks, ODI in parallel, US incorporation: 1-2 days, India Pvt. Ltd.: 2-3 weeks. Total: ~4-8 weeks.

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.

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.

US topco: 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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India topco: 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.

Transactions come through with their currency, which matters for startups running India-US operations where money moves between entities. Cross-border flows have tax and transfer pricing implications, so having them recorded properly from the start makes filing season considerably easier.

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.

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

Form 2553 is the application to elect S corporation status for a business entity with the IRS.

Inkle has partnered with dozens of companies to bring founders the best of the startup ecosystem, including perks from platforms like Stripe, Notion, Mercury, Brex, Gusto, Carta and more - helping you build your startup stack at cost-efficient rates.

Check out our long list of partners and perks on our perks page - https://www.inkle.ai/perks

• Entity formation (Delaware C-Corp)
• EIN application (Employer Identification Number)
• Bank account setup
• Registered agent services
• Founder stock issuance
• Lifetime documentation & compliance support

Yes. An S Corporation that had no revenue or activity during the year still needs to file a nil return. The IRS requires the filing regardless of whether the company was active. Skipping it results in the same failure-to-file penalty as skipping a return for an active company.

Automatic Stripe revenue sync is part of the Books Standard Plan. (See note below, this needs sign-off.)

Reporting companies who are obligated to file are:

• Domestic reporting companies include Corporations, LLCs, and other entities created by filing with a U.S. secretary of state or a similar office.
• Foreign reporting companies include entities formed under foreign law registered to do business in the U.S. through filing with a secretary of state or similar office.

Any US citizen or resident alien whose income meets or exceeds the IRS filing threshold for the year is required to file. US citizens must file regardless of where in the world they live. The filing threshold varies depending on filing status, age, and income type, and changes slightly each year. If you are not sure whether you need to file, the answer for most working adults with any meaningful income is yes.

Take the guesswork out and see the numbers for yourself.

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

Form 1040 is the federal income tax return for US citizens and resident individuals. It reports all income earned during the year from every source, applies deductions and credits, and calculates the tax owed or the refund due. It is the central document in your annual personal tax filing.

The IRS requires businesses to file certain information returns electronically if they meet a minimum filing threshold.

Under current regulations, if your business files 10 or more information returns in total during a calendar year, you must submit them electronically. This is a significant reduction from the previous threshold of 250 returns.The requirement applies across multiple return types, including forms such as 1099s and W-2s, and businesses must aggregate all return types to determine if they meet the threshold. For example, if you file 2 W-2s and 8 Form 1099s, you are required to file all of them electronically since the total equals 10.

This mandate applies to most businesses, with limited exceptions, and affects how companies manage and submit their tax filings, especially those working with independent contractors.Failure to comply with the electronic filing requirement may result in IRS penalties for each return filed incorrectly.

Yes. Data Sources supports multiple connections, and the Reconciliations dashboard groups accounts by source, so Mercury sits alongside your cards, Stripe, and anything connected through Plaid.

Yes. Checking, savings, and sub-accounts all sync, and each appears separately on the Reconciliations dashboard with its own reconciliation status. If you use sub-accounts to ring-fence runway or reserves, that structure carries through to your books.

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

In such cases, you need to rectify the mistake by amending the form. Utilize 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

Inkle strongly recommends Accrual Method (over Cash Method,) because:

- it's gives a much truer picture of your finances.

- prevents you from getting any nasty surprises.- it is easier for forecasting.

- it is GAAP-standard, and most VCs will ask for it.

- you will eventually have to do Accrual Method anyway after you cross $25mm in revenue (by law) or sooner, so why not start with it.

- the IRS does not permit you to switch to Accrual (from Cash) in the middle of a year.

- restating and translating prior years' Cash books into Accrual method would be a nightmare, if you want to compare later.

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Cash Method is possibly OK if you have very little activity, or just started out or have no real revenue operations in US, but consult us for a discussion on this.

Because Accrual Method is more complex, we can only offer this to monthly customers. Trying to do Accrual Method once per year would just be too difficult for you and us, as we would have to discuss every transaction and invoice.

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Because your CRM knows about revenue before your bank does. A deal closes, an invoice goes out, and payment arrives some number of weeks later. Accrual accounting recognises that revenue at the close, not the payment. Connecting HubSpot means your receivables reflect your actual pipeline rather than a manually maintained list that's always slightly out of date.

Transactions flow in automatically once connected, so your books stay current between closes rather than catching up at month-end.

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.

The IRS grants tax-exempt status to specific organisations, such as:

1. Charitable Organizations
2. Social welfare Organizations
3. Social clubs
4. Trade associations
5. Labor Organizations
6. Veterans' Organizations
7. Political Organizations

The IRS maintains a comprehensive list of tax-exempt organizations, available here. These organizations are required to submit an information return, which may include Form 990, Form 990-EZ, and Form 990-PF.

Accrual. Revenue books when it's earned rather than when the payout clears, which means your income statement reflects the month the customer was actually charged.

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.

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 the US subsidiary takes a week or two more.

The payment appears in both places, and reconciliation is where they meet. The bill records the expense and the liability, the bank transaction records the cash leaving, and reconciling the account ties the two together so nothing double-counts.

Nothing. Inkle is free for you. Your end customers will pay Inkle and Stripe the normal rack rates. You can charge your customers whatever fees you wish. Alternatively, you can add your fees on top and quote a combined fee to your customers.

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.

That mismatch is the point of connecting both. When the CRM and the books disagree, it surfaces in your books rather than staying invisible until someone chases a payment that was never invoiced.

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.

April 15 for most individuals. A six-month extension to October 15 is available by filing Form 4868 before April 15. US citizens living abroad receive an automatic extension to June 15 without needing to file separately, but interest accrues on any unpaid tax from April 15.

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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).

Bookkeeping records and reconciles transactions; accounting interprets and analyzes them.

In short - bookkeeping keeps data accurate, while accounting turns that data into strategy and compliance.

Form 5472 is needed for specific reportable transactions, not all foreign-related ones. Consult IRS guidelines or Inkle to determine what to report.

India TopCo = Indian parent with US subsidiary. US TopCo = US parent with an Indian Pvt. Ltd. subsidiary. US TopCo is best for global fundraising.

K-1 income from a partnership or S Corporation is generally reported on Schedule E of your Form 1040. The specific lines depend on the type of income or loss reported on the K-1. This is one of the more technically specific parts of an individual return, and Inkle's CPAs handle the reconciliation as part of your filing.

No fees to participate.

Yes, and most startups do. They cover different spend: cards handle the subscriptions and day-to-day purchases, Bill handles invoiced vendors like contractors, agencies, and legal. Both feed the same ledger.

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.

Schedule K-1 is the document each shareholder receives after Form 1120-S is filed. It shows their individual share of the S Corp's income, deductions, and credits for the year. Shareholders need their K-1 to file their personal tax return accurately. Inkle prepares a K-1 for every shareholder as part of the Form 1120-S filing.

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

C Corporations must file Form 7004 by the original due date of Form 1120 — the 15th day of the 4th month after the end of the tax year.For companies following the calendar tax year, this is typically April 15 (or the next business day if it falls on a weekend or holiday).

March 15 for calendar-year partnerships. If you filed for a six-month extension using Form 7004, the extended deadline is September 15. There is no further extension available after that date.

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.

Once you submit your pitch, our team reviews it and selects a curated cohort of early-stage startups to showcase. If selected, you will be introduced to investors on a double opt-in basis. If not, you are welcome to apply again after further traction.

Form 8938 includes various foreign financial assets like bank accounts, investments, foreign entity ownership, etc. For a complete list of reportable assets, refer to IRS instructions.

Yes. Data Sources supports multiple connections at once, and the Reconciliations dashboard groups accounts by source, so Ramp cards, a Brex account, and your operating bank all sit side by side. Reconcile the operating account first, then cards, then payment processors.

You must still file a Form 1040 tax return to reconcile your estimated tax payments with your actual tax liability.

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.

Missing a payment deadline can result in penalties and interest charges, so making timely payments is essential. Late payments may also affect your ability to request an extension.

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

No. The connection is read-only. Inkle reads customer and deal records and cannot edit deals, move stages, or contact anyone in your CRM.

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

The IRS charges $220 per partner per month for a late partnership return, starting from the original due date. The penalty grows each month the return stays unfiled and is separate from any tax owed by the individual partners.

No.

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.

Manually added accounts work the same way once you upload statements, which is what most founders use to backfill prior periods after migrating from QuickBooks, Xero, Pilot, or Puzzle.

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You earn rewards by sharing your referral link. When a friend signs up using your link and completes their first service, both you and your friend will receive $100 worth of Inkle Credits or an Amazon Gift Voucher.

Yes. Data Sources supports multiple connections, and the Reconciliations dashboard groups accounts by source, so SVB sits alongside your cards, Stripe, and anything connected through Plaid. Reconcile the operating account first, then cards, then processors.

An EIN is a nine-digit federal tax ID the IRS assigns to a business. It identifies your company on tax returns the way an SSN identifies a person.

You need one to open a US business bank account, run payroll, issue 1099s, and file a corporate return. Most banks will not open an account without it. Here is how to get an EIN and what the IRS asks for.

The QBID is a tax deduction that allows taxpayers to deduct a portion of their qualified business income from eligible businesses, potentially reducing their taxable income.

S corporations are pass-through entities, meaning profits and losses are passed to shareholders, who report them on their tax returns. Understanding these tax implications is essential.

The Delaware Franchise Tax is an annual tax imposed on businesses incorporated in Delaware or have a presence there. It is not a tax on income but on the privilege of conducting business in Delaware.

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

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Indian FEMA residents. 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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