Right here within the U.S., it’s tax season. And regardless that the IRS has prolonged the submitting deadline by a number of weeks, it’s nonetheless a aggravating time for each people and companies. In an period of fixing advantages, everyone seems to be looking out to reduce their tax burden.
Enter MainStreet, an organization based in 2019 that helps qualify tech startups for tax credit that almost all 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 info 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 will use the funds straight away as a substitute of ready on their tax refund. The shopper is accountable 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 cost if it efficiently finds a refund for the shopper.
Within the occasion of an audit, MainStreet provides 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.
Thus far, MainStreet has discovered greater than $80 million for over 1,000 startups. The corporate’s purchasers embody Rally, Newfront Insurance coverage, LedgerX, Pave, and extra.
In the long run, MainStreet plans to develop its operations past serving tech startups to incorporate small companies, as effectively.
MainStreet has acquired nearly $63 million from buyers together with Gradient Ventures, Sound Ventures, and Sign Hearth.