They're the more strategically valuable part of the market anyway. In technology, the low end always eats the high end. It's easier to make an inexpensive product more powerful than to make a powerful product cheaper. So the products that start as cheap, simple options tend to gradually grow more powerful till, like water rising in a room, they squash the "high-end" products against the ceiling. Sun did this to mainframes, and Intel is doing it to Sun. Microsoft Word did it to desktop publishing software like Interleaf and Framemaker. Mass-market digital cameras are doing it to the expensive models made for professionals. Avid did it to the manufacturers of specialized video editing systems, and now Apple is doing it to Avid. Henry Ford did it to the car makers that preceded him. If you build the simple, inexpensive option, you'll not only find it easier to sell at first, but you'll also be in the best position to conquer the rest of the market.

Close scrutiny may be required to determine if costs are incurred in the expansion of an existing business as opposed to the acquisition or creation of a new business. For example, the IRS has ruled that a company's expenses of opening restaurants as new corporate entities were considered startup costs, whereas identical costs it incurred for new restaurants operated within the company were considered expansion costs (Letter Ruling 8423005).
clickbangdead, I believe this was an elegant and beautiful solution to the problem, but apparently it no longer works on . However, using the very same link to the MS thread you provided, a now-working solution can be found on the last pages. I didn't have enough rep to comment at the time, so I posted a solution down below, like an addendum. – Vinícius M Mar 4 at 13:39
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5. Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. Do not include Conservation Reserve Program payments exempt from self-employment tax. See the Instructions for Schedule SE (Form 1040). Do not include any net losses shown on these schedules 5.  
However, you do not have to capitalize amounts for creating an intangible asset if the right or benefit created does not extend beyond the earlier of 12 months after the date that you first receive the right or benefit or the end of the tax year following the year in which you made the advance payment. If you are a cash method taxpayer and your advance payment qualifies for this exception, then you can generally deduct the amount when paid. If you are an accrual method taxpayer, you cannot deduct the amount until the all-events test has been met and economic performance has occurred.

After much deliberation, we at Melotic have decided to take the unfortunate step of winding down the digital asset exchange. Simply put, we did not experience enough growth in this product to justify the ongoing costs of development, maintenance, and support. However, we have exciting new products in development, and we will be focusing our resources on that.


It’s very common for a team to break up after a Techstars Startup Weekend. Sometimes it’s the whole team, sometimes it’s just one person. Whatever happens with your team, it’s okay. People come into this event with their own life story and perhaps they cannot commit to adding more work to their plate afterwards. If you have a good chat with your team, and set the right expectations, you’ll be surprised by how generous people can be with their time and how willing they are to lend a hand.

Hopefully you received plenty of press coverage when you launched and sending those same editors small updates can turn into follow on posts. But most likely they won’t cover you again until version 2 of the product, which means you should be actively reaching out to new websites, magazines, and newspapers who have NOT yet heard of you. PR is one of the most affordable ways to tell your story.
The SBA’s flagship 7(a) loan program also offers financing that borrowers can use to start businesses. But 7(a) SBA loans are tough to get. They typically go to established businesses that can provide collateral — a physical asset, such as real estate or equipment, that the lender can sell if you default. The qualifications are strict, and even if you qualify, the process can take several months.

After that experience, he was determined to find a less risky method of starting new business ideas. He chanced upon the Lean Startup methodology and implemented it to test out a startup idea at only a fraction of the cost. Although it had no customer traction in Singapore bit doing things this way helped minimize the waste in time, effort and money.

You elect to deduct qualifying reforestation costs by claiming the deduction on your timely filed income tax return (including extensions) for the tax year the expenses were paid or incurred. If Form T (Timber) is required, complete Part IV of the form. If Form T (Timber) is not required, attach a statement containing the following information for each qualified timber property for which an election is being made.
· Draw. I sat in a room by myself with the door closed and a giant white board. I divided it in halves. On one side, I wrote down all the stuff I was good at and all the stuff my remaining cofounder was good at. One the other side, I wrote down how the software product we’d been building lined up with those strengths. It didn’t. This was obvious–we’d failed, after all–but it it was conclusive to see there on the big board and it gave me the right grounding to find something else.

The amortization election can be done by filing a statement early in any tax year before the business actually begins. However, the election becomes effective only when the business starts. The business can also revise the statement to include any startup costs that were not included. However, any costs characterized as something other than a startup cost cannot be recharacterized as a startup cost. Organizational costs can also be added later by amending the return.


This book is such a gift to the startup (and broader business) community. As I read the book I was constantly reminded of my favorite business book, Personal History, Katherine Graham's autobiography. Although I love reading business books, Personal History was the first book I read by a business leader that dealt with the human and emotional side of leadership. Mrs. Graham talked openly about her insecurities and doubts, she described what leadership feels like, and she expressed vulnerability.
The London Symphony Orchestra released an orchestral cover of the song in 1978 on Classic Rock: The Second Movement.[113] It was also covered by Barry Gibb in 1978 for the film Sgt. Pepper's Lonely Hearts Club Band and was included on the soundtrack of the same name, recorded in September 1977 and produced by Martin.[114] Gibb's version was released as a single, with "Nowhere Man" as the B-side (also recorded by him and intended for the film).[115] Also in 1978, his version was used as the B-side of Robin Gibb's version of "Oh! Darling" released only in Italy.[116]
“A failure gives one ample time to plan and tighten all loose ends before venturing into a new journey. Therefore, a founder should avoid being hasty in his second attempt at all costs. Also, most startups fail due to lack of cash. Effective cash-flow management, planning, and budgeting go a long way. Founders who have had a bitter experience in their first try know this very well and before venturing out again should have a sound business plan the second time around,” he said.
Ideally you want between two and four founders. It would be hard to start with just one. One person would find the moral weight of starting a company hard to bear. Even Bill Gates, who seems to be able to bear a good deal of moral weight, had to have a co-founder. But you don't want so many founders that the company starts to look like a group photo. Partly because you don't need a lot of people at first, but mainly because the more founders you have, the worse disagreements you'll have. When there are just two or three founders, you know you have to resolve disputes immediately or perish. If there are seven or eight, disagreements can linger and harden into factions. You don't want mere voting; you need unanimity.

He explained that Fab, a company that had been valued at $900 million just three months previously, was about to change drastically. Two-thirds of the company needed to be fired. Its European division would more or less be shuttered. The company had burned $200 million of the $336 million it had raised, and it had failed to find a sustainable business model.


“We placed our bets on the extensive collaboration with the television giant NBC. One could say that we placed too many eggs in the NBC basket. We have spent a lot of time and energy on developing the show. When I received the message from NBC that they were canceling the production of the show, it became clear that the conditions for further operation, without substantial changes, were gone,” [CEO Þorsteinn B. Friðriksson] stated.

If you provide your employees with a per diem allowance that covers lodging, meals, and incidental expenses, you must treat an amount equal to the federal M&IE rate for the area of travel as an expense for food and beverages. If the per diem allowance you provide is less than the federal per diem rate for the area of travel, you can treat 40% of the per diem allowance as the amount for food and beverages.


I like to joke that the dumbest business model for a professional services firm is to spread one's time and effort among a large number of small clients with limited cash, sporadic workflow, extra cost sensitivity, and a propensity to go out of business. That said, the rewards of working with startups and entrepreneurs are as unique as founders themselves.
The London Symphony Orchestra released an orchestral cover of the song in 1978 on Classic Rock: The Second Movement.[113] It was also covered by Barry Gibb in 1978 for the film Sgt. Pepper's Lonely Hearts Club Band and was included on the soundtrack of the same name, recorded in September 1977 and produced by Martin.[114] Gibb's version was released as a single, with "Nowhere Man" as the B-side (also recorded by him and intended for the film).[115] Also in 1978, his version was used as the B-side of Robin Gibb's version of "Oh! Darling" released only in Italy.[116]
Remember, too, the IRS does not use email, text messages, or any social media to discuss your personal tax issue involving bills or refunds. If you get a phone call from someone claiming to be from the IRS regarding a refund owed to you and asking you for your SSN and bank account information, do not give them this information. You should make notes of all information regarding the call and/or the caller, for example, any caller ID information, and report this scam. For more information on reporting tax scams, go to IRS.gov and type "scam" in the search box. You can verify any potential refunds owed to you by contacting the IRS directly.

A startup can go under for a variety of reasons. While founders can stand around and point fingers at each other, attribute it to forces outside of their control, or just blame bad luck. The reality is that startup failure is often like the Titanic and the iceberg. The factors that lead to catasrophe are often refused to be acknowledged until the ship is already sinking.
Despite efforts to restructure the business, which included an injection of funding by the Group’s shareholders the business was unable to be restored to profitability due to the level of redress claims. As a result, the management team had no alternative but to place the above companies into administration. Following the appointment of Administrators there will be no new lending activity.
From Quirky to Homejoy to Zen99, we’ve added 11 startup post-mortems to the 34 we previously added in our first 2015 update. While unicorns continue to be minted and mega rounds continue, there are still many new lessons to be learned from startups facing risks as they navigate the turbulent contract worker economy or failing to acquire customers. The 11 new additions, below.
Despite those early customers, processing fingerprint payments has not taken off as expected. Pay By Touch claims that it has fingerprint scanners in 3,000 stores, but the privately held company has never disclosed how many transactions it processes. For millions of consumers accustomed to using credit and debit cards, the proposition of using a fingerprint hasn’t been all that appealing. “It’s hard to fight the credit-card companies,” says Gartner (IT) analyst Avivah Litan. “Consumers are so used to racking up frequent-flier miles and other rewards that it’s like a David vs. Goliath situation. There’s just not much of a value proposition for the consumer to use a fingerprint.”
In the email, co-founders Karthik Balasubramanian and Brian Moyer stated their belief that the movement of investor interest away from consumer-facing applications for the technology was also a factor. Balasubramanian and Moyer wrote: “While investment and activity continues to occur it is focused on private and alternate chains rather than bitcoin or other public chains where Bonafide operates.” As a result, the co-founders said they saw “little chance” that they would be able to generate revenue, pivot their product or secure additional funding.
This technique doesn't always work, because people can be influenced by their environment. In the MIT CS department, there seems to be a tradition of acting like a brusque know-it-all. I'm told it derives ultimately from Marvin Minsky, in the same way the classic airline pilot manner is said to derive from Chuck Yeager. Even genuinely smart people start to act this way there, so you have to make allowances.

“We knew acquisition was the best course of action,” says [Evan] Graj. That eventually led to Dine In being approached in February by a major Internet company active in the online food space, and it’s my understanding that by April — and significant legal fees later — a sale had been agreed. Then at the eleventh hour the deal unexpectedly fell through, leaving the restaurant delivery startup “high and dry” and its unnamed acquirer a “no-show”. Adds Graj: “They backed out leaving us with a huge legal bill both for Dine In and myself personally, a huge debt to note holders, and no VCs to turn to. A hard lesson to learn and one I’ll be taking into my next venture.”
The next day, my 365th, I resigned my position. I began seeing a therapist twice a week. Under her and my doctor’s guidance, I took antidepressants as prescribed for over a year. The therapist guided me through looking at my experience, my feelings of (un)worthiness, my relationship to work. What I originally had thought was a long hard road to feeling normal took less than a month. I never refilled the anti-anxiety medication again.

A graduate of Emory and Stanford's MBA program, Goldberg began his career in the White House. He spent six years as a special assistant to the chief of staff under Bill Clinton and later became the marketing director of T-Mobile. Goldberg first entered the startup world in the early 2000s when he founded Jobster, a recruiting platform that raised about $50 million before it went sideways and laid off nearly half its staff.
Choose a tax return preparer you will be able to contact in case the IRS examines your return and has questions regarding how your return was prepared. You can designate your paid tax return preparer or another third party to speak to the IRS concerning the preparation of your return, payment/refund issues, and mathematical errors. The third party authorization checkbox on Form 1040, Form 1040A, and Form 1040EZ gives the designated party the authority to receive and inspect returns and return information for 1 year from the original due date of your return (without regard to extensions). You can extend the authority to receive and inspect returns and return information to a third party using Form 8821, Tax Information Authorization.
Entrepreneurs who are involved in the early stages of business creation are unlikely to become preoccupied with life cycle issues of decline and dissolution. Indeed, their concerns are apt to be in such areas as securing financing, establishing relationships with vendors and clients, preparing a physical location for business operations, and other aspects of business start-up that are integral to establishing and maintaining a viable firm. Basically, these firms are almost exclusively concerned with the very first stage of the organization life cycle. Small business enterprises that are well-established, on the other hand, may find OLC studies more relevant. Indeed, many recent examinations of organization life cycles have analyzed ways in which businesses can prolong desired stages (growth, maturity) and forestall negative stages (decline, death). Certainly, there exists no timeline that dictates that a company will begin to falter at a given point in time. "Because every company develops at its own pace, characteristics, more than age, define the stages of the cycle," explained Karen Adler and Paul Swiercz in Training & Development.
The series A round: it’s a sign that your company is well on its way. You’ve had a little success and now there’s some money in the bank. Not only do you have a product or service that investors believe is valuable, but customers also seem to want to buy it. This threshold is both an exciting and scary time for a startup, because following the A round things often change. Companies scale, leadership is tweaked, and more expectations are hefted upon a company.

I consider these questions in light of the changes in Australian politics this week. At least one person has had to unexpectedly reassess her career options and both Julia Gillard and Kevin Rudd are entering into new potential stages in their careers. In doing so they are sharing in what is experienced by the wider working population on a regular basis.


Olena treats the $800 used for personal purposes as made from the $500 proceeds of Loan A and $300 of the proceeds of Loan B. She treats the $700 used for a passive activity as made from the remaining $200 proceeds of Loan B and $500 of unborrowed funds. She treats the $800 used for an investment as made entirely from the proceeds of Loan C. She treats the $600 used for personal purposes as made from the remaining $200 proceeds of Loan C and $400 of unborrowed funds.
Organizational expenses, which are expenses incurred for creating a separate business entity, such as a limited liability company, partnership, or a corporation, are accounted separately, but only if total startup expenses exceed $5000. Although a sole proprietorship may have legal and accounting expenses and expenses for setting up a business, these expenses must be deducted as startup expenses, not as organizational expenses.
Take-away: In a business partnership, formalize the process and paperwork, and hire a lawyer who can spot problems you never dreamed would arise--just in case things get personal. And of course, choose your partners wisely. "It's so important to find people who share your values and ethics," she says. "There are a lot of things you can paper over, and having different sets of opinions is valuable, but not when it comes down to code of conduct."
The IRS stops and flags suspicious or duplicate federal tax returns that falsely represent your identity, such as your name or SSN. If the IRS suspects tax ID theft, the agency will send a 5071C letter to your home address. If you receive this letter, verify your identity at IDverify.irs.gov or call the toll-free number listed in the letter. If you did not receive an IRS notice but believe you’ve been the victim of identity theft, contact the IRS Identity Protection Specialized Unit at 800-908-4490 right away so we can take steps to secure your tax account and match your SSN or ITIN.
You should only become a startup consultant if you, like most entrepreneurs, are a little bit crazy and have so much entrepreneurial DNA you can't handle a "normal" job.  After leaving the i-banking world, I founded one small startup that did ok (small exit) and tried to start another during b-school.  It failed the week of graduation and as such, I had missed all on campus recruiting.  Having zero job offers (or even prospects) was oddly liberating, and I took to heart some advice from a professor-- "find out what you love to do, and do it well enough that people will pay you for it."  I loved startups, I loved consulting, I didn't have any new ideas for starting a startup, so I put these pieces together and hung out the shingle for VentureArchetypes. 
We joined Startup Autobahn for a multitude of reasons, the most important being the opportunities that it has afforded us. As an Israeli startup we have been looking towards the German automotive landscape as the leaders in innovation. We think Startup Autobahn has enabled us to not only begin the conversation with Daimler, Porsche, ZF, BASF and HPE but to truly move from starting conversation to actionable progress in form of real world pilots. We are looking forward to meeting with meaningful contacts with Startup Autobahn’s partners and leveraging their leadership to lead to new opportunities for GuardKnox. At the end of the day, the results of the program will be the main catalyst which will bring business and mutual long term cooperation in between GuardKnox and the partners.
Business startup costs do not include expenses incurred to investigate whether to start or buy a particular business.� These expenses include travel and other expenses incurred to investigate businesses. However, once a decision is made to buy a particular business, then the costs associated with buying or setting up of the business are deductible, including surveying perspective suppliers or customers, surveys of potential markets, facilities, labor, and supplies, professional service fees, advertisements to alert potential customers that the business is opening, salaries and wages for employees who are being trained and for their instructors. Other expenses that would normally be deductible by an operating business would also be amortizable if incurred or paid before the start of business operations.
Example 2: The startup costs for XYZ Corp. are $52,000. XYZ may deduct $3,000 ($5,000 — [$52,000 — $50,000]) of these costs currently. XYZ amortizes the remaining $49,000 ($52,000 — $3,000) of startup costs over 180 months, beginning in the month it begins the active conduct of its business (Sec. 195(b)(1)(B)). The entry to record the startup costs for tax purposes is:
After much deliberation, we at Melotic have decided to take the unfortunate step of winding down the digital asset exchange. Simply put, we did not experience enough growth in this product to justify the ongoing costs of development, maintenance, and support. However, we have exciting new products in development, and we will be focusing our resources on that.

“After your A round, you’ve probably got a company to scale, which means that maybe during your A you had one executive and one idea of a management structure, said Gootee. “Normally after the A round, your employee base is large enough where you have to start developing middle management directors as well as full executive teams. So leadership become really important post-A, and you are trying to manage a large group of people, keep them aligned, and all the other wonderful duties of management and leadership.”
The costs of determining the existence, location, extent, or quality of any mineral deposit are ordinarily capital expenditures if the costs lead to the development of a mine. You recover these costs through depletion as the mineral is removed from the ground. However, you can elect to deduct domestic exploration costs paid or incurred before the beginning of the development stage of the mine (except those for oil and gas wells).

Sandy Botkin CPA, Esq. is the principal lecturer for the Tax Reduction Institute of Germantown, Maryland. Sandy is a best selling author of “Lower Your Taxes:Big Time” and “Real Estate Tax Secrets of the Rich.” He lectures throughout the U.S. on tax reduction techniques for small business professionals.  You can access his web site for more information, including lots of free financial tools, by going to www.sandybotkin.com. You can also access his free blog at www.facebook.com/loweryourtaxes and his free videos at http://www.2012taxdeductions.com/
You cannot claim percentage depletion if you received your interest in a proven oil or gas property by transfer after 1974 and before October 12, 1990. For a definition of the term "transfer," see section 1.613A-7(n) of the regulations. For a definition of the term "interest in proven oil or gas property," see section 1.613A-7(p) of the regulations.
Different rules generally apply to a loan connected with the sale or exchange of property. If the loan does not provide adequate stated interest, part of the principal payment may be considered interest. However, there are exceptions that may require you to apply the below-market interest rate rules to these loans. See Unstated Interest and Original Issue Discount (OID) in Pub. 537.

Our angels asked for one, and looking back, I'm amazed how much worry it caused me. "Business plan" has that word "business" in it, so I figured it had to be something I'd have to read a book about business plans to write. Well, it doesn't. At this stage, all most investors expect is a brief description of what you plan to do and how you're going to make money from it, and the resumes of the founders. If you just sit down and write out what you've been saying to one another, that should be fine. It shouldn't take more than a couple hours, and you'll probably find that writing it all down gives you more ideas about what to do.
You can elect to capitalize and depreciate certain amounts paid for repair and maintenance of tangible property, even if they do not improve your property. To qualify for this election, you must treat these amounts as capital expenditures on your books and records used in computing your income. If you make this election, you must apply it to all repair and maintenance costs of tangible property that you treat as capital expenditures on your books and records for this tax year. To make the election to treat repairs and maintenance as capital expenditures, attach a statement titled "Section 1.263(a)-3(n) Election" to your timely filed original tax return (including extensions) and include your name and address, TIN, and a statement that you elect to capitalize repair and maintenance costs under section 1.263(a)-3(n). You must treat these amounts as improvements to your tangible property and begin to depreciate these amounts when the improvement is placed in service.
The IRS defines start-up costs as amounts paid or incurred for creating an active trade or business, or to investigate the creation or acquisition of an active trade or business. Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit, and for the production of income in anticipation of the activity becoming an active trade or business. Start-up costs include:
Benjamin is currently Director of E-Commerce for Dairy Farm Group, the pan-Asian retail conglomerate that operates Cold Storage, Giant, 7-Eleven, and Guardian in Singapore. From 2014 to 2017, Benjamin was Co-Founder, Group COO, and MD Thailand of HappyFresh, a leading Southeast Asian online grocery startup that has raised over $30m in funding from various regional and international investors. Prior to HappyFresh, Benjamin was part of the early team at Lazada (now part of Alibaba Group) in Indonesia where he spent 2 1/2 years in various roles, including Managing Director and Chief Operating Officer. Benjamin holds an MBA from London Business School and Bachelor of Science from Carnegie Mellon University.

Eventually Yeloha shut down because we could not raise the financing we needed in order to massively grow our network. Timing hurt. The so called “Venture Capital winter” of 2016 coincided with the turmoil in the solar stock market and the bankruptcy of multi-billion dollar SunEdison, venture investors fled from solar, and strategic investors crystalized their strategy around profitability.
The senior leadership team now spends at least 20% of the time interviewing, hiring and on-boarding. We firmly believe that this is time well-spent. We focus a lot on evaluating prospective knollies (that's what we call ourselves) on cultural fitment. We are also trying to make the whole recruitment process scientific by introducing assessment tools (some of our own tools in fact) to supplement behavioral interviews.
The election to deduct development costs ratably as the ores or minerals are sold must be made for each mine or other natural deposit by a clear indication on your return or by a statement filed with the IRS office where you file your return. Generally, you must make the election by the due date of the return (including extensions). However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Clearly indicate the election on your amended return and write "Filed pursuant to section 301.9100-2." File the amended return at the same address you filed the original return.

Phase 6: Changing your behavior. Once you’ve gained insight, it’s time to change your behavior. He writes about the last and hardest phase of his grief: “While I stopped blaming others, understanding what I could change in my behavior took long months. It would have been much easier to just move on, but I was looking for the lessons that would make my next startup successful. I looked at the patterns of behavior, not just at my last company but also across my entire career. I learned how to dial back the hubris, get other smart people to work with me–rather than just for me, listen better, and act and do what was right–regardless of what others thought I should do.”

A nonaccountable plan is an arrangement that doesn’t meet the requirements for an accountable plan. All amounts paid, or treated as paid, under a nonaccountable plan are reported as wages on Form W-2. The payments are subject to income tax withholding, social security, Medicare, and federal unemployment taxes. You can deduct the reimbursement as compensation or wages only to the extent it meets the deductibility tests for employees' pay in chapter 2. Deduct the allowable amount as compensation or wages on the appropriate line of your income tax return, as provided in its instructions.
Every business goes through four phases of a life cycle: startup, growth, maturity and renewal/rebirth or decline. Understanding what phase you are in can make a huge difference in the strategic planning and operations of your business. I’ve met many business owners who believe they are growing because sales are increasing at 2% each year when they're actually declining because they are losing small customers and only slightly growing big ones. These owners aren’t investing in the necessary systems and people to begin a renewal phase. Alternatively, many businesses in the growth phase aren’t allocating the proper resources to fuel the continued growth and miss valuable market share.
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