Industries

Startup Businesses

Any business that started after February 15, 2020, with less than $1 million in gross receipts, may be eligible as a Recovery Startup Business for the ERC.

Did you start a business after February 15, 2020? 

Newer businesses faced distinctive challenges during the economic impact of the COVID-19 pandemic. Thankfully, these businesses can find relief through the Employee Retention Credit (ERC). 

This valuable program offers a tax credit to help cover wages and supports the efforts of eligible start-ups that have struggled due to the pandemic. For recovery businesses that may not qualify for relief under other circumstances, this unique application of ERC can still allow those businesses to claim up to $100,000 if they meet certain criteria.

Our team of Certified Public Accountants (CPA) helps businesses understand their eligibility for the ERC and maximize the credit available to them. We can guide you through the process, ensuring you meet all the requirements and claim the credit correctly. Call us for a free eligibility analysis at (202) 455-6010 or submit your information in our contact form, and we will reach out to you.

Does Your Start-Up Business Qualify for ERC?

Besides financial hardship, there are many other factors that could allow your start-up business to be eligible for ERC. 

Any business that began operations after February 15, 2020 is classified as a recovery start-up business. For businesses like these, there is a possibility to claim up to $50,000 per quarter for the third and fourth quarters of 2021. 

The credit available is calculated as 70% of up to $10,000 of qualified wages per employee, capped at $50,000. In other words, with 8 employees that make at least $40,000 a year, you may obtain the full credit for both quarters of 2021.

If your recovery start-up business meets these requirements, you may qualify for this kind of relief through the Employee Retention Credit:

  • You began operations after February 15, 2020
  • The average annual gross receipts for the business is less than $1 million
  • You have one or more employees that are not majority owners
  • Your business is not otherwise eligible for other ERC relief due to a full or partial suspension of operations or a decline in gross receipts

How Long is the ERC Refund Processing Timeline?

Business owners who have previously submitted their claims for the Employee Retention Credit are likely curious about the anticipated timeline for receiving the tax credit. Given the significant impact of the pandemic on numerous businesses, the IRS faces a substantial workload in processing these applications.

The timeline for each case varies. While it is possible to get your refund processed within 8 months, it could potentially take longer. 

If you wish to check the status of your refund, you may call the IRS or use the “Where’s My Refund?” feature on the IRS website. 

Find a CPA Firm You Can Trust

Recovery startup businesses can utilize the Employee Retention Credit to cover pandemic-related wage expenses. However, it is vital to give careful attention to eligibility requirements and accurate reporting when claiming this credit. The IRS closely scrutinizes the claims for legitimacy, and submitting any errors can result in audits and other complications.

To safeguard your startup’s interests and ensure you receive the relief you deserve, it is crucial to seek professional assistance. Strategic Tax Planning is comprised of a team of experienced CPAs that are dedicated to working closely with you. We can use our knowledge to ensure compliance with all qualifications and accurate representation of facts, enabling you to navigate the intricacies of ERC and prevent costly errors. 

If you own a recovery startup business and are uncertain about your eligibility for the Employee Retention Credit, reach out to Strategic Tax Planning for a free assessment. You can call us today at (202) 455-6010 or submit your information in this contact form, and we will call you.

More Information

Industries We Have Helped to Claim
the Employee Retention Credit

Art Galleries

If your art gallery or art business was affected by a mandated suspension of operations or other restrictions, then you may qualify for the ERC.
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Bowling Alleys, Arcades & Pool Halls

Arcades, bowling alleys, pool halls, or other "Fun Halls" impacted by the COVID-19 pandemic are likely eligible to receive the ERC.
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Breweries, Distilleries & Wineries

If your brewery was affected by a mandated full or partial suspension of operations then you most likely qualify for the ERC.
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Cannabis Industry

If you operate a business in the Cannabis Industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC due to mandatory closures of businesses.
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Chambers

Chambers that paid their employees W-2 wages during the pandemic, and were impacted by the COVID pandemic in 2020 and/or 2021, are likely eligible to receive the ERC
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Childcare & Behavioral Centers

If you operate a childcare or behavioral center, were impacted by Covid restrictions, and have W2 employees--you are likely eligible to receive ERC.
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Construction Companies

If you own a Construction company, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
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Doctors & Medical Industry

Prosthodontists, chiropractors, plastic surgeons, and others are often eligible if a suspension of operations prevented you from performing elective procedures.
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Entertainment

Generally eligible based on shutdowns and other capacity restrictions for doing business. Frequently eligible because of decline in receipts.
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Gyms & Fitness

Was your gym, fitness center, or health-related business impacted during the COVID-19 pandemic, and do you have W2 employees? you are likely eligible to receive ERC.
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Law Firms

Potentially eligible if they experienced partial suspension in operations resulting from an order closing the courts and restricting operations.
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Leisure, Hospitality & Tourism

If you own a business in the leisure and hospitality industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
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Non Profit Organizations

Nonprofits impacted by COVID-19 restrictions that have W-2 employees are most likely eligible to receive the Employee Retention Credit (ERC).
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Portfolio Companies

If you own a portfolio company, were impacted by Covid restrictions, and have W2 employees--you may be eligible to receive ERC.
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Private & Parochial Schools

If you operate a business in the education industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
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Restaurants & Bars

If you operate a restaurant or bar, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
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Retail Stores

Retail shops impacted by COVID-19 restrictions that have W-2 employees may be eligible to receive the Employee Retention Credit (ERC).
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Spas, Salons & Beauty Schools

If you own a cosmetology business, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
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Startup Businesses

Any business that started after February 15, 2020, with less than $1 million in gross receipts, may be eligible as a Recovery Startup Business for the ERC.
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Vending Machine Industry

If you own or distribute vending machines, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
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