A Boon for Startups in California: Leveraging the SSBCI Loan Program

Starting a new venture is always a thrilling yet challenging endeavor. One of the most significant hurdles for startups is securing adequate funding without imposing undue personal risk on the founders. The State Small Business Credit Initiative (SSBCI) loan program in California offers a lifeline for startups looking to grow and expand. Here’s how startups […]

Section 174 Update – R&D Expenditure Capitalization

The IRS released an advance version of Notice 2023-63 providing interim guidance intended to clarify the application of section 174, as amended by the “Tax Cuts and Jobs Act” (TCJA). The notice includes guidance addressing:

New Changes to R&D Tax Credit in 2023

2023 brought several changes to the R&D tax credit and its related provisions. As many of you already know, the R&D tax credit can be used to offset both INCOME taxes and/or PAYROLL taxes depending on your company’s eligibility status. Let’s start with the change that would be relevant to your entity’s income taxes. Some […]

83(b) Election – What A Founder Needs to Know

An 83(b) election is a provision under the U.S. Internal Revenue Code (IRC) that gives an employee the option to pay taxes on the total fair market value of the restricted stock at the time of granting rather than at the time of vesting. Here’s a simple example to illustrate how it works: Example Without […]

How VCs Make Investment Decisions

Venture Capital (VC) firms employ three primary investment decision-making models. The Studio Model favors a hands-on approach where studio operators work directly with founders on product-market fit (PMF) or the initial idea. These VC firms often specialize in a specific industry, providing sector-specific resources and easy access to investors. They look for companies that have […]

What is Research and Development Tax Credit?

The history of the R&D tax credit, also referred to as the Research Credit, started almost 35 years ago to allow businesses that leverage science and technology in their product or process development to reduce corporate income tax liabilities. But it wasn’t until recently  with the passage of the Tax Cuts and Jobs Act (TCJA) in 2017  that this lucrative tax  incentive credit became relevant […]