Founder Personal Finance
Written by Aparna Devalla, CPA
Curated by Rubric Financial
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Tax Obligations Most Founders Miss
- Estimated tax payments: founders with equity income, consulting income, or S-corp distributions must make quarterly estimated payments to avoid penalties
- State tax obligations: if you moved from California to Texas for tax reasons, California may still claim you as a resident for up to 18 months based on ties
- 83(b) election: must be filed within 30 days of receiving restricted stock. Missing this deadline can cost hundreds of thousands in taxes later
- Self-employment tax: founders paying themselves through an LLC owe 15.3% SE tax on all net income. An S-corp election can reduce this significantly
Related Resources
The Income Tax Provision Under ASC 740
An overview of the ASC 740 income tax provision, covering deferred tax assets and liabilities, valuation allowances, and why unprofitable startups still record a provision.
Tax & ComplianceQualified Small Business Stock (QSBS)
How Section 1202 allows startup shareholders to exclude millions in capital gains from federal tax, how the 2025 OBBBA changed the rules, and what your company must do to qualify.
Tax & ComplianceSection 754 Election: Step-Up Basis for Partnerships (and Why S-Corps Can't)
The §754 election is the mechanism that lets partnerships and LLCs step up the inside basis of their assets when a partner dies, transfers their interest, or takes a distribution. S-corps have no equivalent, a real cost founders often discover too late.
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