Section 1202 is a powerful way for early founders and investors to get in and out without incurring tax.  We’re talking with clients about structuring their business correctly and to take advantage of the benefits.  

To encourage innovation and development, the IRS and many states offer credits for increasing research activities, also known as R&D credits.  These credits are available for more than traditional research and can benefit business by reducing both income and potentially payroll taxes for companies just starting up.

Differing GAAP and tax reporting impact cash flows due to varying rules governing revenue recognition, accrued interest to shareholders, and other activities. 

Consider stock option plans and stock grants including the implications of stock options from deductibility from corporate side, and for employees when exercised.

Business Advisory Services

We can help from the ground up, including structuring and entity selection, advice on decisions that will appeal to potential investors, and other foundational choices. Our business advisory team is experienced in working with investors and understands the benefits, reporting and information that matter to them most. When it’s time, we can also help you prepare for your IPO or other exit strategy.

Outsourced Management Accounting

Effective accounting systems are a powerful tool when it comes to running any business. For technology companies, effective accounting systems are essential for both short and long-term planning, reporting to investors and organizing internal responsibilities. Our outsourced management accounting team implement a system that works for your business, create the right dashboards to help you understand how your business is doing and more. Let us handle the accounting so you can focus on your product and services.

Tax Services

We can help by tax planning throughout the year to reduce and manage your corporate income tax including taking advantage of R&D credits. We and our partners can work directly with your engineers to help shape business activities that will qualify for the maximum credits allowable.  For many technology companies, there are some big differences in the way that they report for GAAP vs tax.  And for software companies, it can be even more complicated when it comes to revenue recognition rules. We can help you understand the rules and manage your cash flow to minimize unpleasant surprises at tax time.

Audit & Assurance

We can assist with all of your financial reporting needs to satisfy investor, lender or other financial statement requirements. Our team stays up to date with the complex and ever-evolving GAAP standards to ensure you are in compliance. Technology companies can face unique issues with financial reporting, specifically with the implementation of the new revenue recognition guidance of ASC 606, and team LGA is here to guide you through it. We will make sure your financial statements are telling the true story of your business, while still checking off all of the necessary compliance boxes.