Specialized tax planning, R&D credits, and CFO services for venture-backed startups in Austin. Leverage Texas's no income tax advantage while navigating franchise tax and maximizing federal R&D credits. Serving Downtown, The Domain, and East Austin tech corridor.
Austin has become the fastest-growing tech hub in America. While Texas offers no state income tax, navigating franchise tax, multi-state expansion, and federal credits requires specialized expertise. We help Austin startups maximize tax advantages while scaling efficiently.
While Texas has no state income tax or R&D credit, Austin startups can still claim massive federal R&D credits (20% of qualified expenses). Average Austin tech startup saves $120K-$400K annually on federal credits alone.
Texas's franchise tax (0.75% on gross margin) is complex but can be significantly reduced with proper planning. We help structure your revenue recognition and cost allocation to minimize this tax legally.
Many Austin startups expand to California, New York, or other high-tax states. We help you maintain your Texas tax advantage while managing nexus, apportionment, and remote employee compliance nationwide.
Austin's VC ecosystem has exploded with firms like Silverton Partners, LiveOak Venture Partners, and national VCs opening offices. We deliver investor-ready financials that meet institutional standards.
Most Austin startups incorporate in Delaware for VC fundraising. We expertly manage dual-state compliance, ensuring you meet both Delaware franchise tax and Texas franchise tax requirements.
Texas recognizes QSBS for state purposes (though there's no state capital gains tax anyway). We provide 409A valuations and ensure your equity structure qualifies for maximum federal tax benefits on exit.
While Texas has no income tax, the franchise tax (0.75% on taxable margin) can be confusing. It's based on gross revenue minus either COGS or compensation—choosing the right method and timing revenue properly can save tens of thousands annually.
Our Solution:
Many Austin startups are founded by California or NYC transplants. Properly breaking ties with high-tax states and establishing Texas domicile is critical to avoid ongoing CA/NY tax obligations.
Our Solution:
Texas has a 6.25% state sales tax plus local taxes. SaaS companies must navigate whether their products are taxable, and growing startups face nexus in multiple states requiring registration and compliance.
Our Solution:
Austin startups often grow faster than expected. Hiring across states, international expansion, and revenue surges create tax complexity that can overwhelm founders without proper planning.
Our Solution:
From Downtown co-working spaces to The Domain tech offices and East Austin innovation hubs, we serve startups throughout Austin's thriving tech ecosystem.
Downtown Austin
East Austin
The Domain
South Congress (SoCo)
North Loop
Mueller District
Northwest Austin
Arboretum, Great Hills, Avery Ranch
South Austin
Barton Creek, Zilker, Travis Heights
Round Rock
Dell Diamond area, tech corridor
Cedar Park
Tech Ridge, 1890 Ranch
The Challenge:
A 10-person SaaS startup in East Austin relocated from San Francisco to take advantage of Texas's tax benefits. However, their California accountant didn't understand Texas franchise tax, missed federal R&D credits, and left them exposed to CA tax claims.
Our Solution:
Results:
"SpryTax helped us cleanly exit California and maximize our Texas tax advantages. Their R&D credit work alone paid for 3 years of accounting fees." - Founder & CEO
Join 100+ Austin startups saving an average of $150K+ annually through federal R&D credits and strategic tax planning. Get a free consultation to discover your savings potential.
Texas franchise tax is 0.75% on your "taxable margin" (not gross revenue). You calculate margin as revenue minus either COGS or compensation—whichever gives you a lower tax. There's a $1.23M revenue exemption threshold, and companies under that pay no franchise tax. We help optimize which deduction method to use and plan to stay under thresholds when beneficial.
Yes! While Texas has no state income tax or state R&D credit, you can still claim the federal R&D credit (20% of qualified research expenses). For pre-revenue startups, this credit can offset payroll taxes up to $500K. A typical 10-person Austin tech startup with engineers earning $120K average can claim $100K-$150K in federal R&D credits annually.
California is aggressive about claiming ongoing tax on businesses that leave. You need to properly close CA nexus, establish Texas domicile, file a final CA return, and document the move thoroughly. This includes moving physical presence, majority of employees, and key management to Texas. We provide a comprehensive exit checklist and handle CA FTB communications to ensure a clean break.
Texas considers most SaaS products taxable under their "data processing services" category. You must register for a Texas sales tax permit and collect 6.25% state sales tax plus local taxes (up to 8.25% total). Additionally, you may have sales tax obligations in other states based on economic nexus thresholds. We help analyze your product's taxability and set up compliance.
When you have remote employees outside Texas, you must register for payroll taxes in each state where they work, withhold state income tax (if applicable), and comply with each state's labor laws. We set up multi-state payroll, handle registrations, and ensure ongoing compliance so you can hire talent anywhere without tax headaches.