Tremendous

An angel investor's take on life and business

Most lawyers and accountants have no idea how to work with tech startups. So where should founders go? Here are my favorites…

Incorporation: Capbase. Capbase can get you properly incorporated in minutes for less money than others. It’s just $999/year.

Full disclosure: I have a small investment in this one. I invested in it because I think it’s a fantastic service.

How you incorporate is really important. If you choose the wrong corporate form, like an LLC, you’re cutting yourself off from funding.

All Capbase does is work with startups, so you can be sure they’ll do it right.

Bookkeeping and Tax: Kruze Consulting. Kruze specializes in bookkeeping and taxes for startups. This makes them a much better choice than a typical accounting firm, which will not understand your business.

Because startups are all they do, they’re on the lookout for tax provisions that could help you, like R&D credits. You won’t get that from the accountants down the street.

Many of my investments have worked with Kruze and they’ve always been happy with the service.

Legal: Goodwin. Goodwin works with startups all the time. They understand your needs: things like funding rounds, IP issues, and more.

They’re also really good about giving free or discounted work to early stage startups. They want to build a relationship for the long term.

Shutting Down: Simple Closure. Hopefully, you’ll never have to use this. But let’s be honest: most startups fail.

If you do fail, you need to shut the company down correctly. Simple Closure makes it really easy.

I recently had a startup fail and SimpleClosure handled the process beautifully. I just got the final K-1, an important tax form. It came before most of my other investments, which shows you how efficient SimpleClosure is.

Wrap-Up

Having the right service providers to help you makes your life so much easier. This is true for individuals and it’s true for startups too.

Startups are weird creatures. They incorporate differently than most companies, face different legal issues, and have unique tax considerations.

That’s why these providers are the best — they work with startups every day. You’ll sleep better at night knowing your taxes, legal and accounting are being done right.

Have a great weekend everybody!

More on tech:

When an Investor Pulls Your Term Sheet

Five Things Founders Should Never Pay For

Meet My Latest Investment: Sent.dm

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