FBAR requires reporting on various foreign financial accounts, including bank and investment accounts, and certain foreign retirement or pension accounts if they meet the reporting threshold.

A Delaware C Corporation (C Corp) is a type of business entity formed under the laws of Delaware and is taxed separately from its owners. A C Corp is considered a separate legal entity from its shareholders, meaning it can enter into contracts, own assets, and conduct business in its name.

Some exceptions and rules may apply, especially for entities like trusts and tax-exempt organisations. Consult Inkle today for entity-specific guidance.

To elect S corporation status for a tax year, Form 2553 generally must be filed two months and 15 days after the beginning of that tax year.

Yes, you can electronically file through the FIRE system, often extending the deadline to March 31. Many tax software providers and e-filing services offer this option.

C corporations use Form 926 to report property transfers to foreign corporations.

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, there are income limits and phase-out ranges for claiming the QBID. The limits can vary based on filing status and taxable income.

It's good practice (but not mandatory with Inkle).

In our experience, many founders tend to just "leave it to the deadline" - and then rush or miss the deadline. And they have little visibility into their books at any given time.

If you come to us days before the deadline, it's really tough for us to catch up your books if you have lots of transactions and missing invoices. And almost impossible to use Accrual method. So we'll be forced to used Cash method accounting, which isn't ideal for you.

Many US tax filing services compel you to pay a high monthly bookkeeping charge of more than $500/month and subscribe to Quickbooks, even if you have low activity at the start. We have fair pricing and nudge you for monthly bookkeeping because it's better for you, and it will cost you about half of the total monthly cost over 12 months in terms of annual cleanup anyway. Why not have monthly visibility instead.

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.

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

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

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

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.

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.

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.

Not paying the Delaware Franchise Tax and failing to file the Annual Report for two consecutive years will lead to the State of Delaware's automatic administrative dissolution of the corporation.

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).

You can revoke the S corporation election under certain circumstances, but it typically requires shareholder consent and IRS approval.

It's best to do a tax consultation with our certified professional tax experts who can help you determine the answer.

As a general rule of thumb: if you don't have a formal physical office, permanent employees in attendance, stock or inventory and business operations, then you won't need to file a State return. This is even if your US company address is located in that state. Basically: it depends on what you're doing in the state.

High tech early stage product startups with at least one founder or a subsidiary based in India. Even if you are in the pre-product or pre-revenue stage, you are encouraged to apply. We have no restrictions on valuation size and are open to evaluating startups from any business model focusing on building a US or global business. Being an Inkle customer is not a prerequisite for submitting a pitch, but we'd love to help!

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

FinCen will issue a penalty of $10,000 fine for intentionally not filing it and $250,000 to $500,000 for reporting incorrect information.

Nil return means your US Corporation has no transactions in the concerned tax year.

No.

All reporting companies should include the following information in the Beneficial Ownership Information report -

Reporting Company Details:

1. Legal name
2. Trade names
3. Current U.S. business address
4. Jurisdiction of Formation
5. Taxpayer Identification Number (TIN) or foreign-issued tax identification number and issuing jurisdiction.

Beneficial Owner Details:For each beneficial owner, the reporting company must provide:

1. Name
2. Date of birth
3. Residential address
4. Identifying numbers from an acceptable ID document (e.g., passport or U.S. driver's license) and the issuing state or jurisdiction. (Include a copy of the identification document used for obtaining the identifying number).

Company Applicant Details:Only applicable for companies incorporated on or after 1st Jan 2024. For each company applicant, the reporting company must provide:

1. Name
2. Date of birth
3. Address
4. Identifying numbers from an acceptable ID document (e.g., passport or U.S. driver's license) and the issuing state or jurisdiction. (Include a copy of the identification document used for obtaining the identifying number).

The Delaware Franchise Tax Calculator is a tool designed to help businesses estimate their franchise tax obligations to the state of Delaware. It typically works by inputting relevant financial information, such as the number of authorised shares and gross assets, and then calculating the expected tax amount based on Delaware's franchise tax regulations.

Filing Form 926 is crucial because it allows the IRS to monitor and track investments made by C corporations in foreign entities, ensuring compliance with tax laws.

Our panel will systematically review pitches and curate a cohort of ambitious companies to showcase.

Notification of your selection status will be provided by Inkle by 31st Dec 2023.

If selected, you will be introduced on a double opt-in basis to the investors who wish to meet you.

If not selected, you are welcome to pitch again after further progress.

C Corporations must file Form 7004 on or before the original deadline of their tax return Form 1120, which is by the 15th day of the 4th month after the taxable year ends.

The deadline for C-Corporations following the calendar tax year is April 18, 2023.

You typically need to attach Form 8995 or its related schedules to your tax return to claim the QBID. The exact attachments required may depend on your situation.

Your chosen tax year dates are normally Jan-Dec unless you specific asked for it to be something else in your EIN application (SS-4). - for example Apr-Mar is common for those with Indian subsidiaries to match the underlying India tax year. You can check your chosen US dates in your SS-4 (field 12)or your EIN issuance letter (paragraph 3). Depending on your chosen tax year dates, and only if you want a 6-month extension to your corporate tax deadline, you will need to file the Form 7004 either by 15th April (if your tax year is Jan-Dec) or 15th Jul (if your tax year is Mar-Apr). This buys you a 6 month breather.

Yes, both Form 8938 and FBAR might be necessary since they serve different purposes and have separate reporting thresholds. While FBAR has its requirements, Form 8938 is part of your annual tax return and may need to be filed, even if you're already submitting FBAR.

Partners receive earnings on a monthly basis.

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

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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Foreign Inwards Remittance Advice (FIRA) is a document used in the Indian cross-border payments context. It is used as proof of a foreign currency conversion to Indian Rupees. FIRA is required to claim a GST refund for services or goods exported from India. We provide you with a free FIRA on your dashboard for every transfer, simplifying the process for you.

Due to the high volume of submissions, we regretfully cannot offer personalised feedback on individual pitch submissions. Nevertheless, you can enhance your pitch or prepare for future submissions by participating in our expert sessions or exploring our published content on our blog.

Foreign corporations conducting business in California must file Form 100 if they earn income from sources within the state.

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.

Inkle Raise is not a accelerator, incubator or investor. We provide warm introductions, events and tools for free to the community of founders who apply. Many of these founders will hopefully elect to do business with Inkle.

Instead of a full deduction of the R&D expenses upfront in the year it was incurred, you'll now have to spread (amortize) them over 5 years (US R&D) or 15 years (foreign R&D).

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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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.

If you primarily work with US-based companies that can benefit from Inkle’s accounting and tax solutions, we’d love to have you on board.

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 specific information required may vary depending on the calculator, but typically, you'll need details such as the number of authorised shares, par value of shares, gross assets, and any additional factors relevant to Delaware's franchise tax calculation methods.

We open a Virtual Account with JP Morgan Chase for your Indian entity. You need to make a domestic wire from US Bank A/C to this Virtual Account, and then funds are credited in INR in Indian Bank A/C after currency conversion. Funds do not touch Inkle anywhere.

Reporting companies established or registered before January 1, 2024, must file their initial beneficial ownership report by January 1, 2025. For those created or registered on or after January 1, 2024, the deadline is 30 days from receiving notice of their effective creation or registration or from the first public notice by the secretary of state or similar office, whichever comes first.

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.

A beneficial owner is an individual who either directly or indirectly:

1. Owns or controls at least 25% of the reporting company’s ownership interests.
2. Exercises substantial control over the reporting company.

An individual is considered to exercise substantial control over a reporting company if they:

• Hold a senior officer position (e.g., president, CFO, general counsel).
• Possess the authority to appoint or remove specific officers or a majority of directors.
• Serve as an important decision-maker for the company.
• Exercise any other form of substantial control over the reporting company.

Rewards are processed once your friend completes their first service with Inkle. Payments are typically processed monthly.

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.

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.

The exempted companies that do not need to file BOI are:

• Big operational companies with over 20 full-time employees in the United States maintain a physical office presence in the US and have filed a federal income tax or information return demonstrating gross receipts or sales exceeding $5 million in the previous year.
• Companies involved in investments, along with advisors for investments and venture capital funds, are officially registered with the Securities and Exchange Commission (SEC).
• Pooled investment vehicles operated or advised by specific financial entities.

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

No, it also includes compliance. You can pre-fix the purpose code and download e-FIRA for free from the dashboard to claim GST exemptions.

Individuals who expect to owe a certain amount of tax and don't have it withheld through their paychecks or other sources are generally required to file Form 1040-ES.

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

No. It's free.

You will need basic information such as your company name, incorporator details, and any existing business entities in India.

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.

Obtain a 409A valuation before issuing your initial common stock options, after completing a round of venture financing, annually or after a significant event, and when approaching an IPO, merger, or acquisition.

No, Inkle is not a law firm and does not provide legal advice. For legal matters, we recommend consulting a licensed U.S. attorney.

Yes, our platform adheres to the SOC2 Type 2 security framework. We undergo regular third-party audits to maintain compliance and improve our security practices.

Yes, S corporations have restrictions on the types of shareholders they can have. Certain entities, such as other corporations, partnerships, and non-resident aliens, are generally not eligible shareholders.

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.

We appreciate your help in reporting bugs and have a vulnerability reporting system set up as documented here. Please reach out to security@inkle.io to report a bug.

While bookkeeping focuses on recording financial transactions, accounting involves interpreting, classifying, and reporting those transactions.

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.

You can find Form 2553 and its instructions on the official IRS website. Additionally, tax professionals and software can guide you in completing the form.

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.

These include ongoing compliance support, charter amendments, NDAs, foreign qualifications, and more, ensuring your business remains in good standing.

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.

Accounting software can empower small businesses to manage their own bookkeeping efficiently, thanks to automated operations ensuring accurate financial records. Know more with Inkle.

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

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.

You should adjust your estimated tax payments to reflect the change in income. You can recalculate your estimated tax and make larger or smaller payments as necessary.

Generally, income from eligible businesses, including domestic partnerships, S corporations, sole proprietorships, and certain real estate activities, may qualify for the deduction.

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.

Yes, Inkle Books supports accrual accounting. The platform allows you to record revenues and expenses when they are incurred, rather than when cash is exchanged. This helps in tracking accounts receivable and payable, and in generating accurate financial statements that reflect your company’s financial position and performance over time.

We invite high-quality, active investors of various kinds, including VCs, angels, scouts and syndicates.

You are eligible to pitch once every six months.

Companies for IRS compliance and impartiality often prefer external appraisals, as independent experts ensure accurate evaluation of complex factors. This results in well-supported reports, reducing inaccuracies and conflicts with tax authorities.

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

Form 1120 is a crucial tax document utilized by corporations in the United States to disclose their income, gains, losses, deductions, and credits for federal income tax goals. In Delaware, corporations are expected to submit Form 1120 if they are operating within the state or have obtained income from sources within its boundaries.

No, you do not need to be a U.S. citizen to incorporate in the United States; our services cater to entrepreneurs of all geographies.

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.

Suppose you fail to file a 7004 tax extension or tax return within the appropriate deadline (March 15, 2023, for S-corporations and partnerships and April 18, 2023, for corporations and other businesses). In that case, the IRS will charge interest and penalties on any unpaid Federal taxes.

If you do not file and owe taxes, the failure-to-file penalty is 5% per month (up to 5 months) of the amount due. If your return is over 60 days late, you may be subject to a $135 minimum penalty. The IRS will also impose a failure-to-pay penalty of 0.5% per month (up to 25%) of the amount due if you file a return or extension but don’t pay all your taxes on time.

While the Delaware Franchise Tax Calculator can provide valuable insights into your potential tax liabilities, it may have limitations in accommodating unique business situations or changes in tax laws. Additionally, the calculator's accuracy depends on the inputted data. For comprehensive tax planning, using the calculator as a starting point and seeking professional advice when necessary is recommended.

May 31 or June 30, 2023, for eFiling.

Yes if your US corporation had a foreign subsidiary at any time during the concerned tax year.

C corporations conducting business in Delaware must pay an annual fee known as the Delaware state franchise tax, a privilege fee for operating within the state's jurisdiction.

Specific criteria must be met, such as having a valid business structure (typically a domestic corporation), a particular number of shareholders, and meeting other requirements.

The Internal Revenue Service (IRS) has introduced a significant update to its electronic filing requirements, effective for the 2023 tax year and onwards (to be filed in 2024). This new mandate stipulates that businesses filing ten or more information returns within a calendar year are obliged to submit these returns electronically. This marks a substantial change from the previous regulation, which set the electronic filing requirement at over 250 annual information returns.

Issued in February 2023, the updated IRS regulations encompass various information return types, including forms such as 1099s and W-2s. Under this new rule, businesses are required to aggregate the total number of all return types to determine if they meet or exceed the ten-return threshold. For instance, a company that needs to file two Form W-2s and eight Form 1099-NECs would have to file all of these returns electronically, as the combined total crosses the ten-return limit.

The mandate is quite inclusive, with few exceptions. It applies to almost all returns if their cumulative number exceeds ten. This regulation significantly impacts how businesses manage and file their information returns, especially those dealing with independent contractors' payments.

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 company be called?
• Entity Name: What will your company be registered as?
• Incorporator Name: This can be anyone.
• Incorporator Email
• U.S. Mobile Number
• Indian LLPs/RPs: One for each founder.

Form 5471 is filed by U.S. taxpayers, while Form 5472 is for foreign corporations in U.S. business or U.S. corporations with 25% foreign ownership.

Yes, based on the complexity of a corporation's finances, additional schedules like Schedule R, Schedule K, and others might be required with Form 100.

Bookkeeping is crucial to small business management, irrespective of growth plans. Understand how it not only tracks finances but also aids in accurate tax filings.

Yes, you may still be able to claim the QBID even if you have W-2 wage income, but some limitations and calculations take W-2 wages into account.