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.

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

Electing S corporation status can offer tax advantages, including pass-through taxation and avoiding double taxation on corporate income.

If you have a Delaware C-Corp which was in existence during any calendar tax year (1st January to 31st December), then yes you must file the Annual Report and pay the Delaware Franchise Tax. This is going to cost you a minimum of $400 tax + $50 government filing fee, and possibly much more if you've raised in the millions.

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.

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.

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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You are eligible to pitch once every six months.

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.

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.

If you have paid a US resident contractor or an LLC as a contractual payment or rent, during the Concerned Tax Year, then yes you must file a Form 1099 by 31st January of the following year annually. One filing per person/LLC. If you've missed the deadline, discuss with us how to proceed.

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.

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

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.

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.

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

Generally, foreign real estate isn't reported on an FBAR except when held through a foreign financial account like a foreign bank account, where exceptions may apply.

Form 8995 provides a step-by-step calculation process to determine the QBID. It involves determining your qualified business income, limitations, and other factors.

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.

Individuals, estates, and trusts with qualified company income from pass-through entities, like partnerships, S corporations, and sole proprietorships, may be eligible to use Form 8995.

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

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

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.

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.

You can use the worksheet with Form 1040-ES or online calculators to estimate the amount you should pay. It's typically based on your expected annual income and deductions.

You can make electronic payments for Form 1040-ES through the IRS's Electronic Federal Tax Payment System (EFTPS) or by credit/debit card.

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.

While the Delaware Franchise Tax Calculator can offer a reasonable estimate of your tax obligations, it's essential to remember that it may only account for some possible scenarios or nuances in Delaware's tax laws. For precise tax estimates, especially for complex business structures, it's advisable to consult with a tax professional familiar with Delaware tax regulations.

Take the guesswork out and see the numbers for yourself.

Form 8938 includes various foreign financial assets like bank accounts, investments, foreign entity ownership, etc. For a complete list of reportable assets, refer to IRS instructions.

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

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.

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.

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

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.

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!

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.

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.

Yes! India-resident founders should use the other tab to incorporate their US entity.

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.

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, 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.

We enforce stringent password security policies and MFA (Multi-factor Authentication) based access for all our employees via a central active directory. We strictly monitor access to customer data and only permit it on an as-needed basis.

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

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

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.

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.

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.

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.

Inkle Incorporate is a platform that simplifies the incorporation process for startups, particularly for Indian founders looking to establish businesses in the U.S.

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.

You can complete Form 2553 by providing information about your corporation, shareholders, and the S corporation election. The completed form is then submitted to the IRS.

No, the batch deadlines are only for founders. Investors will stay in out database and receive all batches.

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.

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.

No. It's free.

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.

If a business fails to e-file information returns like Forms W-2 and 1099-series when required, it may face penalties as outlined in IRC Section 6721. These penalties can be imposed for not filing electronically and for late filing or submitting returns with incorrect information.

In 2023, the potential penalty can reach up to $310 for each return, with a yearly cap of $3,783,000. However, for smaller businesses with annual gross receipts not exceeding $5 million, the maximum penalty is limited to $1,261,000. These penalty amounts are subject to annual adjustments based on indexing.

Additionally, hardship waivers are available for those who would encounter significant difficulties meeting the e-filing requirements.

You may need one, the other, or both. FBAR is filed with the Financial Crimes Enforcement Network (and is based on calendar year), whereas Form 8938 goes to the IRS as part of your federal tax filing (and is based on your chosen tax year). FBAR is judged based on foreign balances controlled by your US entity's foreign accounts or its controlled entities foreign accounts, whereas Form 8938 is judged based on a threshold of specified passive income. See here for more details: https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

Providing false information or failing to report/update beneficial ownership may lead to penalties. Civil fines are $500 per day, and criminal penalties include fines up to $10,000.

If a report with inaccurate information is filed without the reporting company's knowledge, there's a 90-day safe harbor to submit a corrected report.

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, 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.

The timeline can vary based on several factors but typically ranges from a few days to a couple of weeks depending on your specific needs and structure.

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.

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.

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.

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

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

Form 8995 provides a step-by-step calculation process to determine the QBID. It involves determining your qualified business income, limitations, and other factors.

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Corporations must provide detailed financial data, including gross receipts, deductions, credits, and other pertinent details essential for calculating net income and tax liability.

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

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.

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.

No.

Detailed reporting on foreign corporation ownership, finances, operations, including key data, related-party transactions, and essential info.

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.

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.

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).

Companies exporting goods or services from India need to furnish a Letter of Undertaking (LUT) on the GST portal. This allows them to make these exports without paying IGST upfront.  It is recommended to include the LUT Application Reference Number (ARN) on the Transfer Pricing invoice.

Here's a sample Invoice: drive.google.com/file/d/1sHgIx7AwswLQkUYnAaiGudN7ZMCh4XSi/view?usp=sharing

The updated IRS electronic filing mandate has significant implications for businesses employing independent contractors. While many companies are accustomed to electronically filing W-2 forms, the inclusion of 1099-NEC forms, typically used for freelancers and 1099 workers, into this process is a new requirement. Businesses with many independent contractors must now develop standardized procedures for filing 1099-NEC forms to maintain organized records, including tax verifications and invoices, for smooth filing at year-end.

The change from a 250-return threshold to just ten is considerable, affecting many businesses that previously relied on manual filing methods.

This oversight can lead to compliance risks and unregulated spending. With the new mandate, it becomes crucial for businesses working with independent contractors to maintain a comprehensive overview of all 1099-NEC forms required for end-of-year filing.

To adapt, companies may need to assign specific roles, possibly within human resources, to manage independent contractor engagements. This would ensure consistent onboarding and payment processes across the organization, facilitating accurate reporting at the end of the year.

Additionally, implementing automated and centralized systems could significantly reduce administrative workload and the likelihood of manual errors.

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.

You can find Form 1040-ES and its instructions on the official IRS website. Tax professionals and tax software like Inkle can also guide you in completing the form.

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

Form 1040-ES payments are typically due quarterly, with due dates in April, June, September, and January of the following year. The exact dates may vary each year.

Inkle is ideal for:

• Early stage to growth stage startup founders looking to streamline their finances.
• Businesses that need to stay compliant with tax regulations.
• Small and Medium-sized Businesses (SMBs) needing real-time financial insights.

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.

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.

There is a flat 0.25% forex markup fee on live mid-market rates. There are no other hidden fees, such as flat fees or GST deductions. Since we don't charge a flat fee, GST is not applicable.

C corporations can electronically file Form 926 through the IRS's Modernized e-File (MeF) system.

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.

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.

In such cases, you need to rectify the mistake by amending the form. Utilise Form 1120X, the Amended U.S. Corporation Income Tax Return, for this purpose. Form 1120X must be submitted within three years from the original return.

To complete Form 1120X, you'll need the following information:

1. Business name
2. Explanation of changes
3. Business address
4. Details on payments and credits
5. Data on income and deductions
6. Tax amount due or overpayment
7. Employer Identification Number (EIN)
8. Signature

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

No, Form 2553 is typically for corporations. However, some states allow LLCs to elect S corporation status for federal tax purposes.

Yes, Inkle Incorporate is one of the only platforms for US incorporation compliant with Indian FEMA regulations

A Transfer Pricing Benchmarking Study is conducted to determine the margin rate for transactions between the related parties. It is required annually from the second year of starting such transactions. A Transfer Pricing Audit (Form 3CEB) is a mandatory annual report that companies engaging in Transfer Pricing must file with the Indian tax authorities. Inkle can help you with both of these processes through our network of empaneled CA firms.

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.

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.

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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