Right here within the U.S., it’s tax season. And regardless that the IRS has prolonged the submitting deadline by a couple of weeks, it’s nonetheless a anxious time for each people and companies. In an period of adjusting advantages, everyone seems to be looking out to attenuate their tax burden.
Enter MainStreet, an organization based in 2019 that helps qualify tech startups for tax credit that the majority accountants don’t examine for. The California-based firm works with startups’ accountants to examine for greater than 200 potential unclaimed tax credit.
MainStreet works by integrating the startups’ payroll and scanning the information on a month-to-month foundation for potential federal, state, and native tax credit. If MainStreet finds a tax credit score, the corporate will advance 80% of the credit score quantity to the startup in order that they’ll use the funds straight away as a substitute of ready on their tax refund. The shopper is answerable for repaying that quantity, with no curiosity incurred, after they obtain their credit score from the federal government.
MainStreet doesn’t cost a price for this month-to-month service. As an alternative, the corporate retains the remaining 20% of the startups’ tax credit score quantity. Nonetheless, MainStreet solely receives fee if it efficiently finds a refund for the shopper.
Within the occasion of an audit, MainStreet affords assist via the auditing course of. And if MainStreet makes an error with the paperwork or credit score declare, the shopper is insured for as much as $1 million.
To this point, MainStreet has discovered greater than $80 million for over 1,000 startups. The corporate’s shoppers embrace Rally, Newfront Insurance coverage, LedgerX, Pave, and extra.
In the long run, MainStreet plans to broaden its operations past serving tech startups to incorporate small companies, as properly.
MainStreet has obtained virtually $63 million from buyers together with Gradient Ventures, Sound Ventures, and Sign Fireplace.