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Comment by pclmulqdq

3 years ago

I am personally very happy that my LLC's SBIR grant proposals in 2022 were all turned down, because I wasn't thinking about the disastrous tax consequences.

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pclmulqdq

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1auralynn  3 years ago

Right? Like, should I even bother applying for Phase II in September? There is no way I could afford to pay taxes on $1.8M.

  • pclmulqdq  3 years ago

    IMO you should talk to an accountant. It's pretty cheap to do that in comparison to the tax bills (my accounting bills are <$1000/year for a similar situation to you). Phase II is a lot of money, and you may be able to get some venture debt now that you're past Phase I to cover what the SBIR doesn't (ie the taxes). There's also some chance that the law around this will be reversed.