Seed-Stage Tax Return Guide
Written by Aparna Devalla
Curated by Rubric Financial
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Why Pre-Revenue Startups Must File Tax Returns
- Federal and state tax returns are required for every incorporated entity regardless of revenue; failure to file triggers penalties and can jeopardize your corporate good standing.
- Filing establishes your tax basis, net operating loss (NOL) carryforwards, and credit elections that will reduce your tax liability once the company becomes profitable.
- Investors and acquirers will request copies of all prior tax returns during due diligence, and missing filings are a red flag that can delay or derail transactions.
- State tax return requirements vary: you must file in your state of incorporation (typically Delaware), your headquarters state, and any state where you have employees or nexus.
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About the author
Aparna DevallaCPAHead of Tax & Accounting
CPA and Head of Tax & Accounting at StartupCFO. Specializes in multi-state tax compliance, R&D credits, and GAAP-compliant books for venture-backed startups.
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