Specialized tax planning, R&D credits, and CFO services for venture-backed startups in Seattle, Bellevue, and the Puget Sound region. Navigate Washington's unique B&O tax system while maximizing federal credits. Serving the Amazon, Microsoft, and emerging startup ecosystems.
Seattle's tech ecosystem rivals Silicon Valley, with Amazon and Microsoft spawning thousands of startups. While Washington has no state income tax, the B&O (Business & Occupation) tax system is complex and unique. We help Seattle startups navigate these waters while maximizing federal credits.
Washington State has no income tax, so there's no state R&D credit. However, Seattle startups can still claim substantial federal R&D credits (20% of qualified expenses). Average Seattle tech startup saves $180K-$450K annually on federal credits alone.
Washington's Business & Occupation tax is levied on gross revenue (not profit) at rates from 0.138% to 1.5% depending on activity type. Proper classification and planning can save tens of thousands annually. We're experts in B&O tax optimization.
Seattle's startup ecosystem is fueled by Amazon and Microsoft alumni. We understand the unique challenges of AWS-native SaaS, enterprise sales cycles, and the expectations of Seattle-based VCs and corporate development teams.
Seattle VCs like Madrona, Voyager Capital, and national firms expect institutional-grade financials. We deliver monthly GAAP financials, detailed KPI tracking, and board-ready reports that support successful fundraising.
Seattle startups often expand to California, New York, and beyond. We manage multi-state tax compliance, sales tax nexus, and remote employee payroll while maintaining your Washington tax advantages.
Washington has no capital gains tax (a 2024 attempt was overturned), making QSBS planning even more valuable. We provide 409A valuations and ensure your equity structure qualifies for maximum federal tax benefits on exit.
Washington's B&O tax applies different rates to different business activities: Service (1.5%), Retailing (0.471%), Wholesaling (0.484%), Manufacturing (0.484%). Misclassification can cost you thousands. SaaS products can be classified differently than consulting services.
Our Solution:
Washington taxes SaaS and digital products at the standard sales tax rate (10.25% in Seattle). Additionally, economic nexus rules mean selling to customers nationwide triggers obligations in 45+ states. Compliance is complex but critical.
Our Solution:
Seattle has some of the highest salaries and office costs in the country. While this increases qualified R&D expenses, it also strains cash flow. Smart tax planning and financial management are essential to maintain runway while scaling.
Our Solution:
Washington requires employers and employees to contribute to the state's Paid Family & Medical Leave program. Rates change annually and are based on employee wages. Compliance requires proper payroll setup and quarterly reporting.
Our Solution:
From South Lake Union tech campuses to Capitol Hill co-working spaces and Bellevue offices, we serve innovative startups throughout the Seattle metropolitan area.
South Lake Union
Capitol Hill
Pioneer Square
Fremont
Ballard
University District
Eastside
Bellevue, Redmond, Kirkland, Sammamish
North Seattle
Northgate, Lake City, Shoreline
South Seattle
Georgetown, Columbia City, Rainier Valley
Tacoma Area
Tacoma, Federal Way, Kent, Renton
The Challenge:
A 20-person enterprise SaaS company in South Lake Union was using a local accountant who misclassified their B&O tax activity (costing them $18K/year in overpayment) and had never claimed R&D credits. They needed better financial reporting to support their Series B raise.
Our Solution:
Results:
"SpryTax's deep understanding of both Washington tax and SaaS business models was incredible. They found savings we didn't know existed and delivered the financial sophistication our investors expected." - Co-Founder & CEO
Join 120+ Seattle startups saving an average of $180K+ annually through federal R&D credits and B&O tax optimization. Get a free consultation to discover your savings potential.
The Business & Occupation (B&O) tax is Washington's version of a corporate income tax, but it's calculated on gross revenue, not profit. Different business activities have different rates: Service (1.5%), Retailing (0.471%), Manufacturing (0.484%), Wholesaling (0.484%). SaaS companies often qualify for the lower Manufacturing rate. There's a small business credit of $35 per month for businesses under certain thresholds.
Yes! While Washington has no state income tax or state R&D credit, you can still claim substantial federal R&D credits (20% of qualified research expenses). For pre-revenue startups, credits can offset up to $500K in payroll taxes. A typical 15-person Seattle tech startup with engineers earning $140K average can claim $150K-$250K in federal R&D credits annually.
Yes, Washington considers SaaS a taxable digital automated service. You must collect sales tax (10.25% in Seattle) from Washington customers. Additionally, you may have sales tax obligations in other states where you exceed economic nexus thresholds ($100K in sales or 200 transactions). We help set up proper sales tax compliance and integrate automated solutions.
Washington requires employers and employees to fund the state's Paid Family & Medical Leave program. The 2024 rate is 0.74% of wages (employers pay roughly 27%, employees pay 73%, though employers can choose to pay more). This is in addition to federal payroll taxes and unemployment insurance. We handle all payroll tax calculations and quarterly reporting.
Yes, if you have a physical presence, employees, or conduct substantial business in Washington, you must register as a foreign corporation with the Washington Secretary of State. You'll file both Delaware franchise tax and Washington B&O tax returns. We manage both registrations and ongoing compliance to keep you in good standing.