There are many reasons why a startup should do its taxes on time, including tax compliance, which is crucial for VC funding. But the single best reason to do your startup’s taxes on time is to take advantage of the R&D Tax Credit. The R&D Tax Credit is a federal tax benefit that provides startups that develop, design, or improve products, processes, or software. Startups that are eligible for the R&D Tax Credit can take a dollar-for-dollar tax credit, which can be used to offset payroll taxes. So the earlier in the year you do your taxes and claim the credit, the faster you can start claiming the credit.