The Founder's Guide to Tax Planning Before (and After) a Raise
So you just raised a round—or you’re gearing up for one. Congrats. Hopefully you’ve already called your lawyer, high-fived your co-founder, and popped something bubbly (or at least caffeinated). But here’s the part most founders sleep on: the tax man is always watching.
Raising capital doesn’t just change your bank balance. It changes your tax profile. And if you don’t plan for that—before and after the raise—you’re asking for a painful April and possibly a few IRS love letters you really don’t want.
Let’s break it down. Plain and simple.
Before the Raise: Don’t Wing It
Here’s the deal: the moment you bring outside money in, your business becomes a different beast. And like any good beast, it needs to be fed and tracked. That’s where tax planning comes in.
1. Get a Tax Accountant Who Knows Startups
Not your cousin’s buddy who does taxes “on the side.” You want someone who lives in startup land. Someone who knows the difference between SAFE notes and SAFEs you stash in a closet. Someone who can walk you through Section 1202 and not make your eyes bleed.
Search for: startup tax services, startup tax accounting, tax accountant for founders. These aren’t just keywords. They’re your lifeline.
2. Structure Now, Save Later
Equity matters. So do salaries. Are you paying yourself? Should you be? What about stock options for the team? If you don’t think this stuff has tax consequences, you’re playing checkers on a chessboard.
Smart tax planning now—before you close that round—can help you:
Avoid triggering income tax on your own shares
Stay compliant with 83(b) elections (you’ve filed one, right?)
Keep the IRS from treating your founder stock like a bonus
Spoiler: the IRS doesn’t send thank-you notes when you overpay. They just keep the change.
After the Raise: You’ve Got New Problems
Money in the bank is great. But with great capital comes great tax complexity.
1. Set Aside Cash for Taxes (Yes, Really)
Just because it’s in your bank account doesn’t mean it’s yours to keep. You might owe taxes on things like:
Forgiven liabilities
Imputed income
Compensation events tied to stock or bonuses
If your tax accountant hasn’t talked to you about these, you need a new one. Yesterday.
2. Get Your Books Tight
Now that you’ve got investors, your finances aren’t just your business anymore. Sloppy books = red flags. You want clean tax accounting, solid documentation, and a filing strategy that doesn’t involve praying on TurboTax at 11:59 PM.
Pro tip: Good tax accounting isn’t just about filing. It’s about planning. Getting ahead of your burn, optimizing for R&D credits, and setting up clean quarterly payments. Yes, those are a thing.
Founders, Don’t Wait
Startup tax planning isn’t glamorous. It’s not the story you’ll tell at Demo Day. But it is what keeps the lights on, keeps you out of hot water, and keeps your equity working for you.
So here’s the play:
Before the raise: Call a startup-savvy tax accountant and get your structure right.
After the raise: Stay on top of your tax filings, accounting, and reserves.
Handle your tax game like you handle your product roadmap: with intention, not panic.
Need help? Ursa partners with founders to handle the tax side of the business so you can focus on building. Whether it’s startup tax filing, cleanup, or getting ahead of the next round, we’ve got you covered. No fluff. Just answers.
Let’s keep you out of trouble—and in business. Book a strategy call now!