This Week in Startups The Top 6 Startup Finance FAQ’s | Startup Finance Basics w/ Kruze's Scott Orn
19 snips
Dec 12, 2024 
Scott Orn, COO at Kruze Consulting, shares his finance expertise tailored for startup founders. He tackles crucial questions like avoiding payroll tax and the complexities of shutting down a startup. Scott explains the importance of correctly classifying workers to avoid tax pitfalls. He sheds light on managing franchise taxes and discusses how to communicate with VCs about revenue. The conversation also covers the risks of venture debt, emphasizing disciplined financial practices for long-term success.
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Focus on Building
- Focus on building your company, not avoiding payroll taxes.
- The IRS has likely considered all the angles, so prioritize growth.
Founder as Contractor
- Avoid classifying founders as contractors to their own company.
- The IRS will see through this attempt to avoid payroll taxes and penalize you.
Use Payroll Company
- Use a payroll company to handle taxes correctly.
- They automate the process and minimize IRS audit risks.