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The SpryTax blog

Startup tax, explained by the people who file it.

Deadlines, forms and the math behind them. A new article every weekday, written and checked by our CPAs.

Start hereForming a Delaware C-CorpCosts, documents, and the first 30 daysStart hereThe 83(b) electionDeadline, mailing, and what goes wrongStart hereR&D tax creditsWhat qualifies and the payroll offset
Busy street in Manhattan, New York

LatestEquity & 83(b)

QSBS and New York State: Does NY Conform to the Federal Exclusion?

Yes. New York follows the federal QSBS exclusion: New York State and New York City income tax start from federal adjusted gross income, so gain excluded under IRC Section 1202 is generally not taxed by either. A 2026 Senate proposal to decouple did not make it into the enacted FY2027 budget, though any gain that is not excluded federally is fully taxable in New York.

Rohan Miller · · 6 min read

Founder typing on a laptop at a wooden deskDelaware & Formation

Delaware Registered Agent Requirements: What C-Corps Need to Know

Every Delaware corporation must keep a registered agent with a physical office in Delaware under 8 Del. C. §132, and the agent must be there during business hours to accept service of process. If your agent resigns and you do not appoint a new one within 30 days, Delaware declares the charter forfeited.

Dhruv Gupta5 min read

Clipboard checklist next to a laptopTax Compliance

Startup Tax Deductions Every New Business Owner Should Know in 2026

A new business can deduct up to $5,000 of startup costs (IRC §195) and $5,000 of organizational costs (§248) in its first year, with each allowance reduced dollar for dollar once costs pass $50,000 and the rest amortized over 180 months. Once you are operating, domestic R&D is fully deductible again under §174A, equipment qualifies for 100% bonus depreciation, and ordinary costs like payroll, software and rent are deductible as you pay them.

Anita Smith6 min read

Price chart on a trading screenEquity & 83(b)

83(b) Elections for Crypto Tokens: Filing Requirements and Tax Implications

Crypto founders and team members who receive tokens subject to vesting can file an 83(b) election within 30 days of the transfer, just as with restricted stock, if the tokens face a real risk of forfeiture. The IRS treats digital assets as property, but it has issued no token-specific 83(b) guidance, so valuation and smart contract mechanics need careful documentation.

Rohan Miller6 min read

Founder signing incorporation documents at a deskDelaware & Formation

Incorporating in Florida vs Delaware: Which State Is Better for Your Startup?

Incorporate in Delaware if you plan to raise venture capital; incorporate in Florida if you are a bootstrapped business operating only in Florida. A Delaware corporation doing business in Florida still registers there ($70), files a $150 Florida annual report and pays Florida's 5.5% corporate income tax on income above the $50,000 exemption, so Delaware adds cost rather than replacing Florida obligations.

Dhruv Gupta4 min read

Golden Gate Bridge over the bay in San FranciscoTax Compliance

California Corporate Tax Rate 2026: What Startups Actually Pay

The California corporate tax rate is 8.84% of net income apportioned to California, with an $800 minimum franchise tax that newly incorporated or qualified corporations skip in their first taxable year. Banks and financial corporations pay 10.84%, S corporations 1.5%, and the corporate alternative minimum tax rate is 6.65%.

Rohan Miller7 min read

Open-plan startup office with exposed brickLocation Guides

Bookkeeping for Startups in Illinois: Requirements, Taxes, and Provider Options

Illinois startups need books that support a combined 9.5% C corporation rate (7% income tax plus 2.5% replacement tax), single-sales-factor apportionment and Chicago's lease transaction tax on cloud software. Getting bookkeeping right from day one avoids costly corrections during fundraising.

Anita Smith6 min read

Two colleagues reviewing numbers at a laptopStartup Finance

Which Companies Create Investor-Ready Financial Packages? A Startup Guide

Investor-ready financial packages are created by three kinds of providers: startup-focused accounting firms that close your books and produce GAAP statements, fractional CFO firms that add forecasting and investor communication, and in-house finance teams using reporting software. Whichever you use, the package needs accrual-basis statements, burn and runway, a reconciled cap table and the metrics your investors track.

Dhruv Gupta5 min read

Tax forms, a calculator and a pen on a deskTax Compliance

Texas Franchise Tax Forms 05-158 and 05-164: A 2026 Guide for Startups

Form 05-158 is the Texas Franchise Tax Report long form (Form 05-158-A is page 1 and 05-158-B is page 2), filed by entities whose annualized total revenue is above the $2.65 million no-tax-due threshold and who don't use the EZ report. Form 05-164 is the Texas franchise tax extension request. Annual reports are due May 15, and the extension moves the filing date to November 15 for most filers.

Rohan Miller7 min read

Busy street in Manhattan, New YorkLocation Guides

New York Startup Tax Incentives: Credits, Exemptions, and Programs for 2026

New York's main tax incentives for startups in 2026 are the Excelsior Jobs Program's refundable credits, the Qualified Emerging Technology Company (QETC) credits, and, for biotech companies in the city, the NYC Biotechnology Credit. START-UP NY closed to new applicants on January 1, 2026, so it is no longer an option for new companies.

Anita Smith6 min read

Founder signing incorporation documents at a deskDelaware & Formation

Affordable Accounting for Delaware C-Corps in 2026: What to Pay For

The most affordable accounting setup for a Delaware C-Corp is the one with the lowest total annual cost, including Form 1120 and state returns, Delaware franchise tax filed under the Assumed Par Value Capital Method, and books clean enough for investors. A low monthly bookkeeping price that leaves those out is rarely the cheapest option.

Dhruv Gupta5 min read

Team working on laptops around a shared tableR&D Tax Credits

R&D Tax Credit Qualification Criteria for Startups: What the IRS Actually Requires

A startup qualifies for the federal R&D tax credit when its work passes the four-part test in IRC §41: permitted purpose, technological uncertainty, a process of experimentation, and reliance on engineering or hard science. That covers a wide range of software and engineering work, not just lab research.

Rohan Miller5 min read

Clipboard checklist next to a laptopDelaware & Formation

What Platform Handles Both Delaware Incorporation and Ongoing Bookkeeping?

Some formation services, startup accounting firms and bundled platforms handle both Delaware incorporation and ongoing bookkeeping, but coverage varies a lot. The test is whether one provider forms the company, keeps accrual books, files the Delaware franchise tax under the Assumed Par Value Capital Method and prepares Form 1120.

Anita Smith5 min read