GSVlabs is excited to partner with Leyton on the Entrepreneurship World Cup and Passport as Leyton can help startups all over the US access thousands of dollars in R&D credits, improving their cash flow and encouraging the pursuit of innovation.
What is R&D Tax Credit?
The Research & Experimentation Tax Credit or R&D Tax Credit is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States.
Every year, companies claim billions of dollars in R&D credits, directly offsetting their tax liability. And every year, billions of dollars in credits go unclaimed because many companies don’t realize that they are eligible. Any company, in any industry, that has devoted resources toward developing new products, processes, or software – whether successfully or not – is eligible. Even companies attempting only to improve their existing products, processes, or software are eligible. The benefits can be significant, including increasing cash flow as much as 9.1% of qualified spending for federal taxes, reducing effective tax rates and increasing earnings per share.
Why is the R&D Tax Credit Important for Startups?
The R&D Tax Credit was put in place to incentivize innovative companies, including those who are pre-revenue. Startups are burning cash, investing all their time and money and the credit helps to puts a portion of that investment back in their pockets.
Leyton recently helped a software startup that was in between funding rounds and struggling to make payroll. They were considering laying off a developer as they could no longer afford his salary, then they met Leyton. The software and tax experts at Leyton were able to identify a substantial benefit allowing the company to not only keep their developer, but hire another.
The sooner a start-up engages with an R&D Tax Credit specialist the better. It’s important to put together a strategy to help guide your financial decisions as your business grows, having real-time interaction with Leyton ensures no project is overlooked leading to a larger tax credit.
We do the work, you get the credit!
Leyton is one of the world’s largest innovation funding specialists with specific expertise in the optimization of Federal and State R&D Tax credits helping its clients improve global performance. With over 20 years’ global experience, Leyton has assembled tax professionals and technical consultants experiences in almost any industry sector and a technical team dedicated to R&D Tax claims globally.
With GSV Passport, you can access 30% off normal fees from Leyton. In addition, we provide founders with access to over 60 mentors, access to over 450 investors and nearly $600k in free and discounted services.
Join us for the Entrepreneurship World Cup to learn more about Leyton and see the best startups from all over the US compete for over $100k in prizes and a chance to pitch at the global finals in November for $5M in cash and investment.