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Investments are not taxed. You will most likely operate with a loss for the first year so your tax bill will be $0. And then you will be able to carry-over any
by rpedela 12y ago
Investments are not taxed.
You will most likely operate with a loss for the first year so your tax bill will be $0. And then you will be able to carry-over any losses to subsequent years which will reduce or eliminate your corporate tax bill in those years. Get a professional for the carry-over stuff. As patio11 said, there are often minimum state taxes. I believe California is ~$800 and Delaware is ~$200 or more.
You will of course have to pay income tax on wages individually. If you are considered employees then the company also has to pay a portion of the payroll tax. If consultants, then the company does not need to pay payroll tax. Talk to a lawyer about which is appropriate for the founders.
runway (number of months) = (total - one-time expenses) / monthly expenses