Fractional CFO services in the US

QSBS - Section 1202

Qualified Small Business Stock is the single most consequential US tax incentive for early-stage shareholders. Shares held for five years in a qualifying C-corp can be excluded from federal capital gains tax up to the greater of $10M or 10x basis. Drives almost every US founder and early-investor structuring decision.

Federal R&D credit (Section 41)

Federal R&D tax credit of roughly 6-10% of qualifying research expenditure, claimable annually. Early-stage companies can apply up to $500k per year against payroll taxes rather than income tax - a meaningful cash benefit for pre-revenue startups. Section 174 amortisation rules (in force from 2022) materially changed the timing of R&D tax outcomes.

SBIR and STTR grants

Federal non-dilutive grant programmes for small businesses doing research with commercial potential. SBIR Phase I awards up to $300k; Phase II up to $2M+. STTR requires a research-institution partner. Slow process but no equity given up and a credibility marker for later VC.

Venture debt

The most developed venture debt market in the world. Hercules Capital, TriplePoint Venture Growth, Bridge Bank, JPMorgan Innovation Economy and the post-acquisition First Citizens / SVB are the most active providers. Typically deployed alongside or shortly after a priced equity round.

Revenue-based financing

Capchase, Pipe, Arc and Clear.co advance cash against forward revenues for SaaS, ecommerce and consumer-subscription businesses. Faster to draw than venture debt, more expensive, repaid as a fixed share of monthly revenue.

Crowdfunding (Reg CF, Reg A+)

Republic, Wefunder and StartEngine are the dominant platforms for Reg CF (up to $5M) and Reg A+ (up to $75M) raises. Used most often by consumer brands and impact-driven businesses to combine capital with community.

Incentive Stock Options (ISOs)

Tax-advantaged options available only to W-2 employees of qualifying companies. No regular tax on grant or exercise (AMT can apply at exercise on the spread). Gains taxed as long-term capital gains if shares held one year post-exercise and two years post-grant. Capped at $100k of fair value vesting per year per employee.

Non-Qualified Stock Options (NSOs)

Standard option grants for non-employees (advisors, contractors, non-execs) or for grants above the ISO cap. Taxed as ordinary income on the spread at exercise, then capital gains on subsequent appreciation. More flexible than ISOs but tax-heavier.

Restricted Stock Units (RSUs)

Promise to deliver shares on vesting, used at later stage when share value makes options impractical. Taxed as ordinary income at vesting (or at settlement for double-trigger RSUs used at private companies). Double-trigger structures are now standard at unicorn-stage private companies.

Early exercise & 83(b) elections

Many US startups allow option holders to early-exercise unvested options to start the QSBS and long-term capital gains holding clocks. The 83(b) election (filed within 30 days of purchase) tells the IRS to tax the spread at exercise rather than vesting. A standard part of US early-employee onboarding.

409A valuations

Section 409A requires that option grants be priced at or above the company's fair market value, supported by an independent valuation refreshed at least annually and on any material event (priced round, secondary, M&A discussion). Carta and Pulley bundle 409A reports with cap-table management.

Reporting and W-2 integration

Option exercises, RSU vests and ISO disqualifying dispositions all flow through W-2 payroll reporting in the relevant year. ISO exercises also trigger Form 3921 to the employee and IRS. Coordination between the cap table tool, payroll provider and CPA is what keeps the scheme clean at year-end.

Accounting

• •QuickBooks Online - universal US default for early and mid-stage.
• •Xero - alternative, stronger for international subsidiaries.
• •NetSuite - for post-Series C companies needing multi-entity consolidation.

Payroll

• •Gusto - startup-native; the default for under 100 headcount.
• •Rippling - integrates payroll, HR, IT provisioning; common at 50+ headcount.
• •Justworks - PEO model, useful for multi-state hiring.
• •Deel or Remote - for hiring contractors and staff outside the US.

Business banking

• •Mercury - the startup banking default; deep VC integration.
• •Brex and Ramp - combine cash management and spend management.
• •First Citizens (ex-SVB), JPMorgan Innovation Economy - for venture debt and larger balances.

Cap table & equity admin

• •Carta - the US default; bundles 409A valuations and ESOP administration.
• •Pulley - strong alternative with modern UX and competitive 409A pricing.
• •Shareworks - used at later stage and by companies preparing for IPO.

Expenses & corporate cards

• •Brex and Ramp - the two dominant startup cards; rich expense automation.
• •Expensify or Concur - for companies needing classic expense workflows.
• •AmEx Business - for cash-back and points operators outside the startup-card space.