Frank Lamanna, Decosimo Memphis Principal, presented on accounting and tax considerations to the 2013 Zero to 510 class' medical device accelerator group on May 22, 2013.
Accounting & Tax Considerations for New Businesses
1. A Global Reach with a Local Perspective
www.decosimo.com
Accounting and Tax Considerations for
New Businesses
Frank Lamanna
2. Keep track of expenses paid personally that are
directly related to the business
Travel
Lodging
Meals
Legal fees
These expenses are potentially deductible for tax
purposes
Keep all receipts
Document the 4 W’s with each receipt
Who, When, Where and Why
WHAT TO DO BEFORE COMPANY IS
FORMALLY SET-UP
3. Decide on entity type and engage an attorney to set up the legal entity
Partnership
LLC
C-Corp
S-Corp
File for a FEIN
Open a business banking account using the new FEIN
From this point DO NOT commingle personal and business funds
All cash in and cash out should be conducted through this new business account
Register with the State
Once employees are paid – PAYROLL
Once sales are made – SALES TAX or SALES TAX EXEMPTION LETTER
Hire a CPA
Be sure appropriate books are maintained either by a bookkeeper or by a CPA firm
WHAT NEXT?
4. Year-End
Company Tax Return – Federal and State
W-2s/W-4s
1099s
Annual Reports
Personal Property tax return(s)
Monthly/Quarterly
Payroll tax returns
Sales tax returns
UNDERSTAND VARIOUS
REPORTING REQUIREMENTS
5. Almost all reporting requirements will need good
books and records to file accurately
Most will have significant interest and penalties if
not filed timely or even accurately.
IMPORATANCE OF GOOD BOOKS
6. Bookkeeping
Outsource vs. Internal
Will you need additional capital?
Good financial statements will be important
Timely proof of accurate tax filings will be important
Will you need traditional bank financing?
Same as above
If you are successful in raising additional rounds of capital….
The sophisticated investors will often require use of a reputable
CPA firm
At some point a Compilation, Review or Audit may be required
These must be performed by a CPA firm
OTHER THINGS TO CONSIDER
7. Take the opportunity to develop a relationship with a
good CPA Firm.
Your CPA Should:
Do more than keep company books accurate and file
timely returns.
Be an advisor and a key partner to you for advice.
MOST IMPORTANTLY
8. Frank Lamanna, Jr., CPA
Assurance Principal
Frank Lamanna, Jr., an assurance principal in Decosimo’s
Memphis office, also serves as a Director with Decosimo
Corporate Finance, LLC, a broker/dealer member FINRA, SIPC.
Frank provides audit and management advisory services to
businesses, partnerships and not-for-profits, as well as 401(k) and
profit-sharing plans.
In addition to providing assurance services, Frank has spent
much of his 17-year career providing corporate buy-side and sell-
side transaction advisory services. He has been involved with
numerous due diligence engagements for software, wholesale
distribution and telephone systems companies, as well as a minor
league baseball team.
ABOUT THE SPEAKER
901.683.8899
franklamanna@decosimo.com
On LinkedIn:
http://www.linkedin.com/pub/frank-lamanna/6/790/237
9. DECOSIMO CAN HELP
From family-owned startups to public companies,
Decosimo serves thousands of domestic and international
clients from virtually every industry segment with quality
audit, tax and advisory solutions.
Our clients trust our technical expertise and timely delivery
on compliance engagements, as well as our guidance and
confidentiality when it comes to growth and exit planning.
As a leading accounting firm perennially ranked among the
Top 100 firms, we have the resources to grow with any
business and will offer the same level of quality and
expertise through every stage of growth.
10. Decosimo is a Top 100 Regional CPA firm with nearly 300
professionals and staff
Offerings:
Assurance – Audits, Reviews, Compilations, Agreed Upon Procedures
Tax – Corporate and Individual Tax Compliance, Planning, State and Local Tax Incentives
Research, Estate and Gift Tax, International Tax Services
Advisory – Valuation Services, Business Appraisals, Due Diligence, Transaction Advisory,
Litigation Support, Fraud Investigation and Risk Assessment, Strategic Transition Planning,
Internal Audit Advisory
Investment Banking – offered through Decosimo Corporate Finance, LLC
Office Locations:
Tennessee - Memphis, Chattanooga, Knoxville and Nashville
Alabama – Huntsville
Georgia – Atlanta and Dalton
Ohio – Cincinnati
Cayman Islands – Grand Cayman
ABOUT DECOSIMO
11. A GLOBAL REACH WITH A LOCAL
PERSPECTIVE.
From nine office locations, Decosimo serves
thousands of clients in 14 countries and more than
800 different zip codes across the United States.
Decosimo’s U.S. Footprint
12. Chamber member
Active member with the Tennessee Chapter of
Association for Corporate Growth
Sponsor and judging body for the Memphis
Business Journal’s Small Business Awards
recognition program for decades
Sponsor of the In-Synk Plan Forward Workshop
which offers a one-day strategic plan process for
Memphis business leaders
SUPPORTING BUSINESS IN MEMPHIS