What are the tax forms you're supposed to send to investors?

Helen Adeosun

March 12th, 2015

I've sent my 10 99s but an investor asked about forms to send her? I had no clue other than paperwork I was supposed to turn in other docs. What are the tax forms entrepreneurs are supposed to send and while we are it what tax terminology or paperwork besides the obvious are we supposed to know?  If you have a competitive tax prep start up this is TOTALLY your moment to shine!

Chris Carruth VP/Director. Strategy | Business Development | Operations | Product | Solutions

March 12th, 2015

It depends on the corporate structure of the company, what securities instruments were used to support equity investments by third parties, if there were profits or losses distributed, etc. Assuming an experienced CFO is helping you he/she will know what is appropriate. If not, a) get a new CFO and b) ask your attorney, assuming he was involved with drafting the securities subscription and structuring the company.

Michael Brill Technology startup exec focused on AI-driven products

March 12th, 2015

Helen, this stuff isn't hard by any means, but as Chris mentioned, you really should chat with someone directly about your situation as it sounds like you need a quick primer. What the investor requires depends on your entity type and for small, early-stage companies is often nothing other than unaudited financials.

What type of entity do you have?

Susan Heider Enrolled Agent

March 12th, 2015

I agree with Chris & Michael. In order to provide a better answer, more information is needed. If you aren't sure what your business structure is, what type of tax forms will you file for you business, the form number?If/when you got an EIN (Employer Identification Number) you should have received a letter saying what tax form you needed to file. you would have received the letter right away (downloadable) if you got your EIN online or in the mail if you got your EIN by another method.

Robert Gezelter Principal, Robert Gezelter Software Consultant

March 13th, 2015

As has been said, see/speak with your CPA/attorney. In terms of filings, there is no special category for "Startup". What must be filed depends on the legal form of the enterprise and the type of investment. If the company is in a form where the tax consequences are pass-through (e.g., S-Corp, some LLCs), you likely will need to file forms declaring the profit/loss as allocated.