Specialized tax planning, R&D credits, and CFO services for venture-backed startups in Boston, Cambridge, and the Greater Boston area. Navigate Massachusetts's complex tax landscape while maximizing federal and state R&D credits. Serving biotech, AI, SaaS, and fintech innovators.
Boston's innovation ecosystem—from MIT and Harvard spin-outs to world-class biotech and AI companies—demands sophisticated tax expertise. Massachusetts has complex tax rules, but also offers generous R&D credits. We help Boston startups navigate this landscape and maximize savings.
Massachusetts offers both federal (20%) and state (10% refundable) R&D credits. Boston biotech and AI startups average $250K-$600K in combined annual credits. MA's refundable credit provides cash back even for pre-revenue companies—a huge advantage.
Boston is the global biotech capital. We understand FDA approval accounting, clinical trial cost capitalization, grant revenue recognition (NIH, SBIR), and the unique R&D credit opportunities for life sciences companies.
Massachusetts has an 8% corporate excise tax, complex apportionment rules, and aggressive enforcement. We navigate MA DOR compliance, combined reporting, and multi-state taxation to minimize your tax burden legally.
Boston VCs (Atlas Venture, General Catalyst, Matrix Partners) and university tech transfer offices have high expectations. We deliver institutional-grade financials that support fundraising and licensing deals.
Like other startup hubs, most Boston companies incorporate in Delaware. We expertly manage dual-state compliance, ensuring you meet both Delaware franchise tax and Massachusetts corporate excise tax requirements.
Massachusetts recognizes QSBS, allowing up to $10M in tax-free federal gains on exit (though MA still taxes at 5% on personal income). We provide 409A valuations and ensure your equity structure qualifies for maximum tax benefits.
Massachusetts uses a single-sales factor apportionment formula, which can be beneficial or detrimental depending on where your customers are located. For SaaS companies, determining "sales sourcing" for MA purposes is particularly complex.
Our Solution:
Life sciences R&D credits require careful documentation of qualified research activities, clinical trial expenses, and FDA compliance costs. Massachusetts DOR audits biotech credits more aggressively than software credits.
Our Solution:
Many Boston startups license IP from MIT, Harvard, or other universities. These agreements create complex revenue recognition issues, royalty payment obligations, and tax considerations that require specialized accounting expertise.
Our Solution:
Massachusetts has a 9% "millionaire's tax" on income over $1M (in addition to the base 5% rate). This impacts founder compensation, stock option exercises, and exit planning. Strategic timing and structure can significantly reduce personal tax burdens.
Our Solution:
From Kendall Square biotech labs to Seaport District SaaS companies and Cambridge AI startups, we serve innovative companies throughout the Boston metropolitan area.
Kendall Square
Back Bay
Seaport District
Cambridge
Financial District
Somerville
Cambridge
Kendall Sq, MIT, Harvard Innovation Lab
Somerville
Assembly Row, Union Square, Davis Square
Brookline
Coolidge Corner, Longwood Medical
Waltham/128
Route 128 tech corridor, Waltham
The Challenge:
A 25-person biotech startup in Kendall Square (Cambridge) had an accountant who didn't understand life sciences R&D credits, missed the MA refundable credit entirely, and couldn't properly account for their NIH SBIR grant or MIT licensing agreement. They needed better financials to support Series A fundraising.
Our Solution:
Results:
"SpryTax's biotech expertise is unmatched. They found R&D credits our prior accountant missed, got us cash back from the MA refundable credit, and delivered the financial sophistication our Series A investors required." - CEO & Co-Founder
Join 90+ Boston startups saving an average of $250K+ annually through federal and MA R&D credits and strategic tax planning. Get a free consultation to discover your savings potential.
Massachusetts offers a 10% refundable R&D credit on qualified research expenses that exceed a base amount. "Refundable" means you get cash back even if you have no tax liability—huge for pre-revenue startups. Combined with the 20% federal credit, Boston tech companies can claim up to 30% of R&D costs. Biotech, software, and AI development all typically qualify.
Massachusetts charges an 8% corporate excise tax on income apportioned to MA, plus a minimum tax based on tangible property or net worth ($456 minimum). MA uses single-sales factor apportionment, so your tax depends on where your customers are located. We help optimize apportionment and minimize MA tax liability through strategic planning.
Biotech and life sciences companies can claim R&D credits on qualified research activities including clinical trials, FDA compliance work, and drug development. However, documentation requirements are stricter. You must show the research meets the "four-part test" (technical uncertainty, experimentation, technological in nature, qualified purpose). We specialize in biotech R&D credit documentation and audit defense.
NIH grants and SBIR awards are recognized as revenue when milestones are achieved or costs are incurred (depending on grant terms). Proper accounting requires tracking allowable costs, indirect cost rates, and milestone completion. We have extensive experience with government grant accounting and can ensure compliance with federal requirements.
Massachusetts recognizes QSBS for federal purposes (up to $10M tax-free), but MA still taxes capital gains at the 5% personal income rate (or 9% if over $1M). However, saving 15-20% on federal taxes is still massive. We help structure your equity from day one to qualify for QSBS and coordinate timing strategies to minimize MA personal income tax on exits.