### Separate Finances on Day One Your first step after incorporating, ensuring legal and compliance are in place, is to open a business bank account. Many traditional banks offer startup-friendly rates and features, but modern options are specifically designed for startups. **[Mercury](https://mercury.com/)**, **[Ramp](https://ramp.com/)**, **[Brex](https://www.brex.com/),** and **[Rho](https://www.rho.co/)** are good options for keeping personal and company finances distinct, offering simplified tax and bookkeeping results for later on. Founders should also open a separate, personal business account for expenses related to the founder, such as healthcare and travel. Staying disciplined here will ultimately benefit you.![[Screenshot 2025-08-19 at 20.09.59.png]] ### Get Tax-Savvy Understanding your company’s — and your own — tax liability will ease the pain when it comes to the end of the year. Using a startup-friendly solution like **[QuickBooks](https://quickbooks.intuit.com/)**, **[Pilot](https://pilot.com/)**, **[Finta](https://www.finta.com/)**, or **[Kruze](https://kruzeconsulting.com/)**, you can: - Set up financial systems for your company - File quarterly and annual taxes - Track deductible startup expenses - Stay on top of compliance deadlines and notify you of any upcoming requirements. Next, your [83(b) election](https://www.cooleygo.com/what-is-a-section-83b-election/). You’ll need to file this within 30 days of receiving your founder equity to lock in long-term capital gains tax treatments. Services like **Carta** or **Clerky** send this via email after you’ve completed the paperwork to issue stock subject to vesting. If you went with another solution, **[HireChore](https://www.hirechore.com/)** can simplify this for you. ![[Screenshot 2025-08-19 at 20.10.38.png]] ### Maximize QSBS (if applicable) If you’re going for traditional venture scale, utilizing QSBS (Qualified Small Business Stock) can eliminate federal capital gains taxes on up to $10M in stock gains if you: - Incorporate as a C-Corp - Issue stock early - Hold it for 5 years - Meet specific IRS requirements (your CPA can guide you) For an S-corp or LLC, it can make more sense to ignore this step while you stay lean and become profitable; otherwise, you may subject yourself to double taxation in a C-Corp. You can always convert your company into a C-corp later and realize a multiplicative basis for QSBS down the road. This can be a powerful strategy for founders, as it can increase the exemption to $750 million (10x). ### Bookkeeping Tools There’s no shortage of bookkeeping solutions for startups and small businesses. I’d rely on **[Haven](https://www.usehaven.com/) or** **[HireChore](https://www.hirechore.com/)**. These platforms help integrate your bank accounts and credit cards to categorize your expenses and revenues, and generate reports. ![[Screenshot 2025-08-19 at 20.11.02.png]] ## Equity and Cap Tables I’d advise managing your equity cleanly from the jump. Use **[Carta](https://carta.com/)**, **[Cake](https://www.cakeequity.com/),** or **[Pulley](https://pulley.com/)** to issue shares, track ownership, and prepare for fundraising. ![[Screenshot 2025-08-19 at 20.11.26.png]]