“Almost exactly one year ago, HomeHero lost its core identity when we were effectively forced to terminate our working relationships with 95% of our 1099 caregivers and required to adopt an inferior employment business model. In the process, HomeHero also lost a majority of its competitive differentiators in price, speed and scalability that allowed us to be so disruptive in 2014 and 2015, and it had nothing to do with competition.” — Kyle Hill, HomeHero CEO
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Keep in mind, many questions can be resolved on IRS.gov without visiting an IRS Tax Assistance Center (TAC). Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC, and check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”
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. 
It is essential that you start to come into your role as head of the company in this stage. While you’ll still be on the front lines often enough, you need to be aware of how your expanding and highly qualified team is going to be taking over a great deal of the responsibilities that were previously tightly under your control. It is your job now to start establishing real order and cohesion as you mobilize the teams according to clearly defined and communicated goals.
Make sure the preparer is available. You need to ensure that you can contact the tax preparer after you file your return. That’s true even after the April 15, 2018, due date for individual returns. The due date for partnerships and S corporations using a calendar year is March 15, 2018. You may need to contact the preparer if questions come up about your tax return at a later time.
If you wish to include transportation of more than 50 miles in the calculation of gross income from mining, request an advance ruling from the IRS. Include in the request the facts about the physical and other requirements that prevented the construction and operation of the plant within 50 miles of the point of extraction. For more information about requesting an advance ruling, see Revenue Procedure 2016-1, available at IRS.gov/irb/2016-01_IRB/ar07.html.
Start-up costs and/or organizational expenditures are typically capitalized or amortized over 5 years.   However, for costs incurred after 10/22/2004 up to $5,000 of these expenses are eligible to be expensed as a deduction.   The remainder is amortized over 15 years.   This deduction is phased out dollar for dollar for costs over $50,000.   Enter the amount of these expenses that are being treated as a deduction.   Proconnect Tax Online (PTO) will create a deduction on the appropriate form or schedule for this amount.

To extend the growth phase as well as industry profits, firms approaching maturity can pursue expansion into other countries and new markets. Expansion into another geographic region is an effective response to declining demand. Because organizations have control over internal factors and can often influence external factors, the life cycle does not have to end.


If you later discover that you deducted an incorrect amount for amortization for a section 197 intangible in any year, you may be able to make a correction for that year by filing an amended return. See Amended Return next. If you are not allowed to make the correction on an amended return, you can change your accounting method to claim the correct amortization. See Changing Your Accounting Method , later.
The startup phase involves the development and early marketing of a new product or service. Innovators often create new businesses to enable the production and proliferation of the new offering. Information on the products and industry participants is often limited, so demand tends to be unclear. Consumers of the goods and services need to learn more about them, while the new providers are still developing and honing the offering. The industry tends to be highly fragmented in this stage. Participants tend to be unprofitable because expenses are incurred to develop and market the offering, but revenues are still low.
Expenses that are deducted as organizational expenses must be incurred before the end of the 1st tax year for a corporation or before the due date, including extensions, of the return for a partnership or limited liability company taxed as a partnership. Although treated somewhat differently, organizational expenses are deducted and amortized similarly to startup expenses. If organizational expenses are less than $5000, the entrepreneur may still elect to deduct the expenses as organizational expenses, especially if the amount of the expenses is close to $5000. If it later turns out that there was an error in the total amount of organizational expenses, then the return can be amended to write off the 1st $5000 and to amortize the remainder. If the election was not made, then the IRS may not allow amortization of the amount exceeding $5000.
Make sure the preparer is available. You need to ensure that you can contact the tax preparer after you file your return. That’s true even after the April 15, 2018, due date for individual returns. The due date for partnerships and S corporations using a calendar year is March 15, 2018. You may need to contact the preparer if questions come up about your tax return at a later time.

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.


The experience shattered my persona as a smart, successful entrepreneur and exposed me as a failure. Like a traditional Near Death Experience (NDE), this journey reordered my priorities and changed me as a person. Without it, I wouldn’t have quit drinking and taken up authenticity as my guiding star. Learning how to be me without armor and jazz hands has been a challenge but ultimately worth it — allowing me to be more successful in business and life.

Research and experimental costs are reasonable costs you incur in your trade or business for activities intended to provide information that would eliminate uncertainty about the development or improvement of a product. Uncertainty exists if the information available to you does not establish how to develop or improve a product or the appropriate design of a product. Whether costs qualify as research and experimental costs depends on the nature of the activity to which the costs relate rather than on the nature of the product or improvement being developed or the level of technological advancement.
“One of Moz’s most frustrating, most consistent, most pernicious failures under my leadership was obsession with the new. Rather than be comfortable with steady improvements to our products, I was always pursuing the next feature, tool or problem we could tackle. And the more that philosophy spread and became part of the company’s culture, the worse we did. We’d launch a new feature or product, market it, then quickly forget about supporting and upgrading it in favor of moving on to the next thing. We had broken and neglected features no one knew how to support.
“Quick update: things are currently looking positive for paychecks to go out tomorrow,” Meyer said in a June 29 memo. Fresco’s employees spent the next day awaiting news about their paychecks, only to find out that Meyer was having an “emergency meeting with executives” in the afternoon. Around 4 p.m., Fresco’s head of community marketing, Johnathan Hamiter, began sending employees private Slack messages saying funding seemed “pretty bleak” and encouraging them to look for other jobs.
When you're looking for space for a startup, don't feel that it has to look professional. Professional means doing good work, not elevators and glass walls. I'd advise most startups to avoid corporate space at first and just rent an apartment. You want to live at the office in a startup, so why not have a place designed to be lived in as your office?
The IRS also disallowed some itemized deductions claimed on the taxpayer’s 2009 and 2010 returns. The disallowed deductions resulted in a delinquent tax bill of about $30,000. The IRS also imposed a 20% substantial understatement penalty on the additional tax due. The Tax Court upheld both the IRS deficiency and the understatement penalty (Tarighi v. Commissioner, T.C. Summary Opinion 2015-28).
No, that would be too easy. The Chart of Accounts vary between companies and are designed to suit the specific needs of an individual company. While most companies will have an “Office Supplies” expense account or a “Checking” asset account, there are certain accounts specific to each industry. For example, a service-based company may have no use for Cost of Goods Sold accounts, but the Cost of Goods Sold accounts are essential to a manufacturing company.  Each business needs to determine specific items they want to keep track of. For example, to keep track of Administrative Salaries vs. Selling Salaries you would set up a separate account for each. The goal is to provide enough detail, but not too much detail where the financials end up unreadable because there is so much going on.
We rounded up 14 more startups whose lessons ranged from “stick to what you’re good at” to “don’t use your VC money like a personal piggy bank.” Classic startup issues like running out of money, getting squeezed out by bigger players, and failing to find a market fit and MVP are also on display. One notable entrant actually gave money back to their VCs so that it could possibly help fund other new companies. There’s something you don’t see every day.
According to the IRS under Section 197, some assets are not considered intangibles including interest in businesses, contracts, or land, most computer software, intangible assets not acquired in connection with the acquiring of a business or trade, interest in existing lease or sublease of tangible property or existing debt, rights to service residential mortgages (unless it was acquired in connection with the acquisition of a trade or business), or certain transaction costs incurred by parties to a corporate organization in which any part of a gain or loss is not recognized.
The first and foremost requirement for a pivot to truly succeed is it must solve a major problem. At the time Fab was a hugely successful company, despite the fact that the daily flash sales model wasn’t sustainable in the long-term, choosing to drastically scale down their product offerings moved too far from their identity as a designer store. Fab ultimately created another problem while prematurely trying to solve another.
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."
If you claim a deduction for a bad debt on your income tax return and later recover (collect) all or part of it, you may have to include all or part of the recovery in gross income. The amount you include is limited to the amount you actually deducted. However, you can exclude the amount deducted that did not reduce your tax. Report the recovery as "Other income" on the appropriate business form or schedule.
We’ve worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begin terminating the services effective immediately.
In life, and in startups, there are endless tempting opportunities to chase. But the founders who learn how to critically assess opportunities, create thoughtful strategies and stay focused in their execution, outperform those who move from channel to channel and idea to idea. Essentialism: The Disciplined Pursuit of Less by Greg McKeown is one of my all-time favorite books and has become the bible I keep coming back to when I feel like I’m losing my edge. Read it.
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