Reply To: Advice on Business Entity and SBIR Relationship
Hello,
This is related to my “Advice on Business Entity and SBIR Relationship” posting. I have the understanding that SBIR grants are taxed. How can a start-up company that meets eligibility for an SBIR as one of the possible business entities (company B or C or some other advised structure yet to be replied) deal with the tax burden? This also raises another question related to the types of business expenses that can be part of the SBIR award budget proposal (phase one submission). What types of things are not allowed? Could some of the funds be used to pay the taxes? Can the submitted budget in the proposal include an income for the principal researcher? Is capital equipment for the research of the SBIR submission included in the total amount awarded? Because I am not familiar with the accounting terminology found in literature on SBIR, I am asking these questions.
Has anyone out there been awarded an SBIR using any of the business entities mentioned in my OG posting?
Thanks 10^6,
fyzxman