There are advantages and disadvantages of each entity you pick and hence it is the responsibility of every startup entrepreneur to pick the right and the most apt form of entity for the organization because knowing all the tax laws associated with each of the unique entities will help the firm especially in terms of startup taxes.

6. Failing to understand tax obligations

 Startup taxes are generally myriad in nature, they keep recurring and it is very important to understand the types and kinds of such taxes. It depends on various criteria’s like the physical location of the company, type of entity etc; it also might include various other forms of taxes like licensing fee, federal taxes, payroll etc. It thereby becomes the sole responsibility of the startup entrepreneur to ensure that there are no loopholes and the fragile concept of ‘startup taxes’ must be dealt skillfully.

5. Not requesting professional help

This is again thought to be a cost and is often ignored by most startup entrepreneurs but the fact is that requesting professional help only helps the business as the tax advisers ensure that the company is up-to-date with all tax payments.