At a glance
- FICA, each of employer and employee
- 6.2% + 1.45% IRS — Publication 15 (Circular E), Employer’s Tax Guide
- Cash-method gross receipts test (2026)
- $32 million IRS — Rev. Proc. 2025-32 (2026 inflation adjustments)
Setup, in order
Get an employer identification number (EIN)
Right after incorporationApply online with the IRS for free once the company is incorporated. The EIN is the company’s tax ID for the bank, payroll, every federal filing and most state registrations.
File 83(b) elections for founder stock
Within 30 days of the stock grantFounders receiving restricted stock subject to vesting file within 30 days of the grant — Form 15620 or a written statement — and give the company a copy. The window can’t be reopened.
Open a business bank account and start the books
Before the first transactionOpen a bank account in the company’s name, keep personal spending out of it, and connect it to an accounting system set up on accrual basis with a chart of accounts that maps to Form 1120.
Choose a tax year and accounting method
First tax returnPick the tax year (most startups use the calendar year) and, with a preparer, the tax accounting method on the first Form 1120. The cash method is available below the $32 million gross receipts test; the books stay accrual.
Collect W-9s and W-8s from vendors
Before the first paymentCollect a W-9 from every US vendor or contractor before paying them, and a W-8BEN or W-8BEN-E from foreign ones. Contractors paid $2,000 or more in a year get a 1099-NEC.
Set up payroll and federal tax deposits
Before the first paycheckChoose a payroll provider, enroll in EFTPS (most providers deposit for you under their own authorization), and register for state withholding and unemployment wherever employees work.
Run I-9, E-Verify and new-hire reporting
Each hireComplete Form I-9 Section 2 within three business days of each hire’s first day of work for pay, decide whether to use E-Verify, and report each new hire to the state within 20 days.
Confirm beneficial ownership (BOI) status
At formation, and when adding entitiesUS companies no longer report beneficial ownership to FinCEN under the August 2026 final rule. Confirm no entity in your structure is a foreign company registered in a state, which still must report.
File Form D after raising
Within 15 days of the first closeFile Form D with the SEC within 15 calendar days of the first sale in a Regulation D round, plus any state notice filings where investors live.
The six areas
- AccountingAccounting and state tax in the USFederal law sets the tax rules, not the bookkeeping ones: US GAAP comes from the FASB and from what investors expect, while Form 1120, the cash-method test and Section 174 come from the IRS. Every state builds its corporate tax on this return.Federal corporate income tax rate21%
- ReceivablesReceivables and sales tax in the USFederally, receivables are governed by accounting standards and information reporting, not tax collection: ASC 606 for revenue, ASC 326 for expected credit losses, Form 1099-K from your processor, and the bad-debt deduction. There is no federal sales tax; that lives with the states.Federal sales taxNone
- PayablesPayables and contractors in the USFederal payables work is information reporting: a W-9 or W-8 from every vendor, 1099-NEC at the new $2,000 threshold, backup withholding at 24% when a TIN is missing, and electronic filing through IRS IRIS once you have 10 returns.1099-NEC / 1099-MISC threshold$2,000
- PayrollPayroll taxes and employer rules in the USFederal payroll is the same in every state: FICA at 6.2% and 1.45% with a 2026 Social Security wage base of $184,500, FUTA at 6.0% on $7,000 less the state credit, deposits through EFTPS, Form 941 each quarter and W-2s by January 31.Social Security tax6.2%
- ComplianceCompliance and filings in the USThe federal compliance calendar is short but unforgiving: Form 1120 and its extension, estimated tax once there is a profit, 83(b) elections, Form 3921 and Form D around equity events, and Form 5472 if the owners are foreign. BOI reporting no longer applies to US companies.Form 1120 due date15th day of the 4th month after year end
- AdvisoryAdvisory: credits and decisions in the USThe federal levers a small company actually pulls: the R&D tax credit against payroll tax, QSBS for founders and investors, the 409A safe harbor for option pricing, and the entity choice that makes the rest available.R&D credit payroll offset (qualified small business)Up to $500,000 a year
What the states add
Shade the map by one question at a time. Each state’s guide covers only what it adds to the federal rules above.
Point at a state, or shade the map by one question.
Who you register with
- Internal Revenue Service (IRS)EIN, Form 1120, payroll tax returns and deposits, 1099s, R&D credit, 83(b) elections
- Electronic Federal Tax Payment System (EFTPS)Paying federal payroll and corporate tax deposits electronically
- Social Security Administration (SSA)Filing Forms W-2 and W-3 through Business Services Online
- Department of Labor, Wage and Hour DivisionFederal minimum wage, overtime and the FLSA exemptions
- U.S. Citizenship and Immigration Services (USCIS)Form I-9 employment eligibility verification
- E-VerifyOptional federal check of I-9 data (required for some federal contractors and in some states)
- Financial Crimes Enforcement Network (FinCEN)Beneficial ownership information reporting — now foreign companies only
- Securities and Exchange Commission (SEC)Form D notice after a Regulation D raise
- HHS Office of Child Support ServicesSets the federal new-hire reporting rule; you report to the state
Common questions
Can my C-corp file its tax return on cash basis?
If your average annual gross receipts for the three prior years are $32 million or less (the 2026 figure) and you are not a tax shelter, the IRS generally lets a C corporation file on the cash method. That is a tax choice only. US GAAP statements, the ones investors, lenders and auditors ask for, are accrual basis regardless.
Is there a federal sales tax on SaaS?
No. There is no federal sales tax. Whether you collect sales tax on software or services depends on each state you sell into, its rules for what is taxable, and whether you have nexus there — physical, or economic under Wayfair. The state pages carry those thresholds.
Who gets a 1099-NEC now?
For payments made in 2026, a 1099-NEC is required when you pay a non-corporate contractor $2,000 or more for services in the course of your business — up from $600, under the 2025 law. Payments to corporations are generally exempt, with exceptions such as attorneys’ fees. Payments you make by card or through a payment app are reported by the processor on Form 1099-K, not by you.
When do I have to deposit payroll taxes?
It depends on how much tax you reported in the lookback period — July 1 to June 30 of the year before last. $50,000 or less makes you a monthly depositor (due the 15th of the next month); more makes you semiweekly. On any day you accumulate $100,000 or more, the deposit is due the next business day. A new employer is a monthly depositor in its first year, unless that $100,000 rule is triggered. All deposits are electronic, usually through EFTPS via your payroll provider.
Does my Delaware C-corp have to file a BOI report?
No. FinCEN’s March 2025 interim final rule exempted companies created in the United States and their U.S. owners, and an August 11, 2026 final rule made that permanent. Only entities formed under foreign law and registered to do business in a US state still report. FinCEN also said it will delete information U.S. companies already filed.
Can a pre-profit startup use the R&D tax credit?
Possibly, if you have qualified research and are a qualified small business — gross receipts under $5 million and no receipts before the five-year window. The election is made on Form 6765 with a timely filed income tax return, and the credit then reduces the employer’s Social Security tax (then Medicare) on Form 941, starting the quarter after the return is filed, up to $500,000 a year.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- IRS — Get an employer identification number
- IRS — Instructions for Form 1120
- IRS — Instructions for Form 7004
- IRS — Rev. Proc. 2025-32 (2026 inflation adjustments)
- IRS — Rev. Proc. 2025-28 (Section 174A guidance)
- IRS — Instructions for Form 4562
- IRS — How long should I keep records?
- IRS — Employment tax recordkeeping
- IRS — Publication 15 (Circular E), Employer’s Tax Guide
- IRS — Depositing and reporting employment taxes
- IRS — Topic no. 759, Form 940 (FUTA)
- IRS — FUTA credit reduction
- IRS — Schedule A (Form 940) for 2025
- IRS — General Instructions for Forms W-2 and W-3 (2026)
- IRS — Questions and answers about the deduction for qualified overtime compensation
- IRS — Instructions for Forms 1099-MISC and 1099-NEC
- IRS — General Instructions for Certain Information Returns (Form 3921 dates)
- IRS — Form W-9
- IRS — Taxpayer Identification Number (TIN) Matching
- IRS — Information return e-file system transitioning to a new platform
- IRS — Instructions for Form 1042-S (2026)
- IRS — Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS — Form 1099-K threshold reverts to $20,000
- IRS — Form 1099-K FAQs: General information
- IRS — Publication 535, Business Expenses (bad debts)
- IRS — Instructions for Form 5472
- IRS — Form 15620, Section 83(b) Election
- IRS — Qualified small business payroll tax credit for increasing research activities
- IRS — Instructions for Form 6765
- IRS — Instructions for Schedule D (Form 1040)
- 26 U.S. Code § 1202 (as amended by Pub. L. 119-21)
- IRS — Standard mileage rates
- IRS — Publication 463, Travel, Gift, and Car Expenses
- SSA — 2026 Cost-of-Living Adjustment Fact Sheet
- DOL Wage and Hour Division — Minimum wage
- DOL Wage and Hour Division — Earnings thresholds for the EAP exemption
- USCIS — Completing Section 2 of Form I-9
- HHS Office of Child Support Services — New hire reporting
- FinCEN — Final rule permanently ends BOI reporting for U.S. companies (Aug 11, 2026)
- FinCEN — Beneficial Ownership Information Reporting
- SEC — Filing a Form D notice
- Supreme Court — South Dakota v. Wayfair, Inc. (2018)
- eCFR — 26 CFR 1.409A-1 (valuation safe harbors)
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.