article thumbnail

The Pitfalls Of State And Local Taxation For Startup Companies

YoungUpstarts

The sale of software isn’t subject to sales tax.”. These tax liabilities, which many companies believe don’t exist, can turn into a heavy burden in the event that a company seeks investors, financing, IPO or sale. Our product is delivered electronically; sales tax doesn’t apply to us.”. “We North Dakota , 504 U.S.

article thumbnail

How Startups Can Prepare For Their First Tax Audit

YoungUpstarts

They work with attorneys to form corporate structures and help with financing agreements. California and Massachusetts have state minimum taxes, whereas states such as Alabama and Tennessee impose franchise tax based on capital/equity.

article thumbnail

The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

Computer Software. Media & Marketing. Small Business. More Industries. Accounting. Advertising. Broadcasting & Entertainment. Computer Hardware. Consumer Products. Defense & Aerospace. Financial Services & Insurance. Food & Tobacco. Hospitality. Industrial Goods & Services. Marketing & Strategy. Media Agencies. Metals & Mining. NAME Comcast.