Tax Blind Spots: Avoid Costly Tax Liabilities That Kill Margins

Demystifying Taxes for Growing CPG Brands

For many founders, taxes can be one of the most overlooked, yet business-critical, topics. To shed light on this complex area, Finaloop recently teamed up with StartUp CPG and Zamp for an insightful webinar, providing founders with real, tactical insights they can act on immediately. This session capped off our popular Finance 101 series, emphasizing that the right financial strategy can be the difference between surviving and thriving, whether you’re just getting started or preparing to scale.

Choosing the Right Business Entity & Maximizing Deductions

‍Raya Rappaport, Head of Product Marketing at Finaloop, kicked off the session by breaking down the tax implications of different business entities: sole proprietorship, partnership, S-corp, and C-corp. She explained how to identify the right fit as a brand evolves, stressing that the chosen structure has significant long-term financial consequences.

Commonly Missed Deductions for CPG Founders

Raya also highlighted the most commonly missed deductions that CPG founders should be aware of, including often-overlooked opportunities like accountable plans, merchant cash advance fees, and various travel expenses. Her key message was clear: founders don’t need to be tax experts, but they do need to know which questions to ask their financial professionals to ensure they're maximizing their tax benefits.

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Navigating Sales Tax & Compliance Exposure

Following Raya, Clete Wertz from Zamp provided essential guidance on sales tax compliance, a rapidly evolving landscape that can catch even small or early-stage brands by surprise. He explained how complex economic nexus rules, intricate product taxability, and varying state-by-state thresholds can unexpectedly create significant compliance exposure.

Proactive Risk Management as You Grow

Clete offered practical advice on how to proactively manage risk and stay compliant as businesses scale. Attendees learned about the importance of monitoring sales activity across states, understanding specific state requirements, and leveraging technology to simplify collection and remittance processes. This proactive approach helps founders avoid penalties and maintain good standing as their operations expand.

Key Financial Insights for Founders

This session underscored that understanding the nuances of tax implications, from entity choice to sales tax compliance, is fundamental for sustainable growth. By knowing what questions to ask and how to proactively manage tax-related risks, CPG founders can ensure their financial strategy supports their business journey, allowing them to focus on innovation and market expansion with confidence.