Accounting & Tax Considerations for New Businesses


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Frank Lamanna, Decosimo Memphis Principal, presented on accounting and tax considerations to the 2013 Zero to 510 class' medical device accelerator group on May 22, 2013.

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Accounting & Tax Considerations for New Businesses

  1. 1. A Global Reach with a Local Perspectivewww.decosimo.comAccounting and Tax Considerations forNew BusinessesFrank Lamanna
  2. 2.   Keep track of expenses paid personally that aredirectly related to the business  Travel  Lodging  Meals  Legal fees  These expenses are potentially deductible for taxpurposes  Keep all receipts  Document the 4 W’s with each receipt  Who, When, Where and WhyWHAT TO DO BEFORE COMPANY ISFORMALLY SET-UP
  3. 3.   Decide on entity type and engage an attorney to set up the legal entity  Partnership  LLC  C-Corp  S-Corp  File for a FEIN  Open a business banking account using the new FEIN  From this point DO NOT commingle personal and business funds  All cash in and cash out should be conducted through this new business account  Register with the State  Once employees are paid – PAYROLL  Once sales are made – SALES TAX or SALES TAX EXEMPTION LETTER  Hire a CPA  Be sure appropriate books are maintained either by a bookkeeper or by a CPA firmWHAT NEXT?
  4. 4.   Year-End  Company Tax Return – Federal and State  W-2s/W-4s  1099s  Annual Reports  Personal Property tax return(s)  Monthly/Quarterly  Payroll tax returns  Sales tax returnsUNDERSTAND VARIOUSREPORTING REQUIREMENTS
  5. 5.   Almost all reporting requirements will need goodbooks and records to file accurately  Most will have significant interest and penalties ifnot filed timely or even accurately.IMPORATANCE OF GOOD BOOKS
  6. 6.   Bookkeeping  Outsource vs. Internal  Will you need additional capital?  Good financial statements will be important  Timely proof of accurate tax filings will be important  Will you need traditional bank financing?  Same as above  If you are successful in raising additional rounds of capital….  The sophisticated investors will often require use of a reputableCPA firm  At some point a Compilation, Review or Audit may be required  These must be performed by a CPA firmOTHER THINGS TO CONSIDER
  7. 7.   Take the opportunity to develop a relationship with agood CPA Firm.  Your CPA Should:  Do more than keep company books accurate and filetimely returns.  Be an advisor and a key partner to you for advice.MOST IMPORTANTLY
  8. 8. Frank Lamanna, Jr., CPAAssurance PrincipalFrank Lamanna, Jr., an assurance principal in Decosimo’sMemphis office, also serves as a Director with DecosimoCorporate Finance, LLC, a broker/dealer member FINRA, SIPC.Frank provides audit and management advisory services tobusinesses, partnerships and not-for-profits, as well as 401(k) andprofit-sharing plans.In addition to providing assurance services, Frank has spentmuch of his 17-year career providing corporate buy-side and sell-side transaction advisory services. He has been involved withnumerous due diligence engagements for software, wholesaledistribution and telephone systems companies, as well as a minorleague baseball team.ABOUT THE SPEAKER901.683.8899franklamanna@decosimo.comOn LinkedIn:
  9. 9. DECOSIMO CAN HELPFrom family-owned startups to public companies,Decosimo serves thousands of domestic and internationalclients from virtually every industry segment with qualityaudit, tax and advisory solutions.Our clients trust our technical expertise and timely deliveryon compliance engagements, as well as our guidance andconfidentiality when it comes to growth and exit planning.As a leading accounting firm perennially ranked among theTop 100 firms, we have the resources to grow with anybusiness and will offer the same level of quality andexpertise through every stage of growth.
  10. 10.   Decosimo is a Top 100 Regional CPA firm with nearly 300professionals and staff  Offerings:  Assurance – Audits, Reviews, Compilations, Agreed Upon Procedures  Tax – Corporate and Individual Tax Compliance, Planning, State and Local Tax IncentivesResearch, Estate and Gift Tax, International Tax Services  Advisory – Valuation Services, Business Appraisals, Due Diligence, Transaction Advisory,Litigation Support, Fraud Investigation and Risk Assessment, Strategic Transition Planning,Internal Audit Advisory  Investment Banking – offered through Decosimo Corporate Finance, LLC  Office Locations:  Tennessee - Memphis, Chattanooga, Knoxville and Nashville  Alabama – Huntsville  Georgia – Atlanta and Dalton  Ohio – Cincinnati  Cayman Islands – Grand CaymanABOUT DECOSIMO
  11. 11. A GLOBAL REACH WITH A LOCALPERSPECTIVE.  From nine office locations, Decosimo servesthousands of clients in 14 countries and more than800 different zip codes across the United States.Decosimo’s U.S. Footprint
  12. 12.   Chamber member  Active member with the Tennessee Chapter ofAssociation for Corporate Growth  Sponsor and judging body for the MemphisBusiness Journal’s Small Business Awardsrecognition program for decades  Sponsor of the In-Synk Plan Forward Workshopwhich offers a one-day strategic plan process forMemphis business leadersSUPPORTING BUSINESS IN MEMPHIS