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.

1. A Global Reach with a Local Perspective
www.decosimo.com
Accounting and Tax Considerations for
New Businesses
Frank Lamanna

2.  Keep track of expenses paid personally that are
directly related to the business
 Travel
 Lodging
 Meals
 Legal fees
 These expenses are potentially deductible for tax
purposes
 Keep all receipts
 Document the 4 W’s with each receipt
 Who, When, Where and Why
WHAT TO DO BEFORE COMPANY IS
FORMALLY SET-UP

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 firm
WHAT NEXT?

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 returns
UNDERSTAND VARIOUS
REPORTING REQUIREMENTS

5.  Almost all reporting requirements will need good
books and records to file accurately
 Most will have significant interest and penalties if
not filed timely or even accurately.
IMPORATANCE OF GOOD BOOKS

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 reputable
CPA firm
 At some point a Compilation, Review or Audit may be required
 These must be performed by a CPA firm
OTHER THINGS TO CONSIDER

7.  Take the opportunity to develop a relationship with a
good CPA Firm.
 Your CPA Should:
 Do more than keep company books accurate and file
timely returns.
 Be an advisor and a key partner to you for advice.
MOST IMPORTANTLY

8. Frank Lamanna, Jr., CPA
Assurance Principal
Frank Lamanna, Jr., an assurance principal in Decosimo’s
Memphis office, also serves as a Director with Decosimo
Corporate Finance, LLC, a broker/dealer member FINRA, SIPC.
Frank provides audit and management advisory services to
businesses, partnerships and not-for-profits, as well as 401(k) and
profit-sharing plans.
In addition to providing assurance services, Frank has spent
much of his 17-year career providing corporate buy-side and sell-
side transaction advisory services. He has been involved with
numerous due diligence engagements for software, wholesale
distribution and telephone systems companies, as well as a minor
league baseball team.
ABOUT THE SPEAKER
901.683.8899
franklamanna@decosimo.com
On LinkedIn:
http://www.linkedin.com/pub/frank-lamanna/6/790/237

9. DECOSIMO CAN HELP
From family-owned startups to public companies,
Decosimo serves thousands of domestic and international
clients from virtually every industry segment with quality
audit, tax and advisory solutions.
Our clients trust our technical expertise and timely delivery
on compliance engagements, as well as our guidance and
confidentiality when it comes to growth and exit planning.
As a leading accounting firm perennially ranked among the
Top 100 firms, we have the resources to grow with any
business and will offer the same level of quality and
expertise through every stage of growth.

10.  Decosimo is a Top 100 Regional CPA firm with nearly 300
professionals and staff
 Offerings:
 Assurance – Audits, Reviews, Compilations, Agreed Upon Procedures
 Tax – Corporate and Individual Tax Compliance, Planning, State and Local Tax Incentives
Research, 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 Cayman
ABOUT DECOSIMO

11. A GLOBAL REACH WITH A LOCAL
PERSPECTIVE.
 From nine office locations, Decosimo serves
thousands of clients in 14 countries and more than
800 different zip codes across the United States.
Decosimo’s U.S. Footprint

12.  Chamber member
 Active member with the Tennessee Chapter of
Association for Corporate Growth
 Sponsor and judging body for the Memphis
Business Journal’s Small Business Awards
recognition program for decades
 Sponsor of the In-Synk Plan Forward Workshop
which offers a one-day strategic plan process for
Memphis business leaders
SUPPORTING BUSINESS IN MEMPHIS