Specialized tax & accounting for DC's GovTech, cybersecurity, and government contractor ecosystem. Navigate complex federal compliance, DC's 8.25% franchise tax, and 10% R&D credits.
GSA schedules, FAR/DFAR compliance, and indirect cost rate calculations require specialized expertise. We handle DCAA-compliant accounting and cost allocation systems.
DC's 8.25% franchise tax applies to DC-source income. If you have remote employees or customers nationwide, apportionment gets complex. We optimize your state tax footprint.
Mixing government contracts with VC funding can complicate Section 1202 QSBS planning. We structure equity and revenue streams to preserve QSBS eligibility for founders.
Employees with security clearances have unique tax considerations (foreign income exclusions, relocation benefits). We handle these edge cases correctly.
Claim 10% of the excess of current year QREs over a base amount. Applies to software, AI/ML research, cybersecurity development. Combines with federal credit. DC companies typically save $25K-$150K annually.
DC offers property tax reductions for small businesses. If you lease office space in Navy Yard or NoMa, landlord may pass through savings to you via lower rent, reducing your operating costs.
DC has highest concentration of SBIR/STTR grants for GovTech and defense tech. We help you maximize these non-dilutive funding sources ($50K-$1.5M) and ensure grants are properly excluded from taxable income.
QHTC-certified companies in DC get various tax benefits including reduced franchise tax rates and hiring credits. We handle the certification process and maximize benefits, typically saving $20K-$100K annually.
DC-based cybersecurity startup with 28 employees and $4.2M revenue (60% commercial, 40% federal contracts) had complex cost allocation issues. Was overpaying DC franchise tax and missing R&D credits on commercial development.
Set up DCAA-compliant indirect cost rate system, separated commercial R&D from contract work, filed DC QHTC certification, optimized state apportionment to allocate less income to high-tax DC, and structured QSBS for founders.
$42K DC R&D credits (10% on $420K excess QREs), $118K federal R&D credits, $29K in state apportionment savings via multi-state planning, plus QHTC certification reducing franchise tax rate. Total first-year savings: $189K plus DCAA-compliant system to support federal contract growth.
DC calls it 'franchise tax' but it functions like a corporate income tax at 8.25%. It applies to DC-source income (sales, payroll, property apportioned to DC). If you have employees or customers in other states, you'll file multi-state and apportion income accordingly.
Yes significantly. Federal contracts require DCAA-compliant accounting, indirect cost rate calculations, and FAR/DFAR compliance. We set up proper cost allocation systems and help you navigate these complex rules to protect margins and stay audit-ready.
Qualified High Technology Company certification in DC provides tax benefits like reduced franchise tax rates and hiring credits. If >51% of your gross revenues are from tech activities (software, IT services, biotech, etc.), you likely qualify. We handle the application.
SBIR/STTR grants are generally excluded from gross income (non-taxable) but you must track this correctly. Any commercialization revenue from SBIR/STTR-funded research IS taxable. We help you separate grant funding from revenue and maximize these non-dilutive sources.
Yes, as long as you meet the Section 1202 requirements ($50M gross assets test, C-corp structure, active business). Having government contracts doesn't disqualify you. We structure your entity and equity grants to preserve QSBS for founders and early employees.
Get a free consultation with our DC tax experts and discover how much you could save.
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