Business and Individual Tax Coordinated with Your Crypto Activity
When your traditional income and crypto activity are part of one financial picture, your tax reporting needs to be too. Full U.S. individual and business tax preparation, handled together with on-chain and digital asset reporting in a single coherent filing.
Book a ConsultationMany crypto-native founders and investors end up with their returns split between two providers: one for the traditional return and one for the crypto reporting. The result is inconsistency at the boundary – founder compensation that's part W-2 and part token grant, LLCs that pay contributors in USDC, multisig treasuries that double as personal savings – and the tax positions on either side of the split often disagree.
CryptoAxis prepares the full return – federal individual, business, and state filings – and integrates your digital asset activity from the start. Decisions about entity selection, basis treatment, character of income, and multi-state allocation get made once, in one place, with the full picture in view.
This service is the natural home for founders of crypto-native companies, businesses with crypto on their books, sole proprietors with mixed income, and high-net-worth individuals whose traditional and digital asset portfolios are both substantial.
Scope of a Business & Individual Engagement
Complete federal and state preparation, scoped to the entities and individuals in your situation. Specific scope is set in the initial consultation.
Individual income tax (Form 1040)
Complete Form 1040 preparation including W-2 income, self-employment income, K-1 pass-through income, investment income, retirement contributions, itemized vs. standard deduction analysis, and full crypto activity integration.
Business tax preparation
Form 1120 (C-corporation), Form 1120-S (S-corporation), or Form 1065 (partnership/LLC) preparation, with proper treatment of business-held crypto, token treasury activity, and crypto-denominated revenue and expenses.
Schedule C for self-employed
Self-employment income preparation for sole proprietors – crypto creators (NFT artists, content creators paid in crypto), miners operating as a trade or business, and any other unincorporated business activity.
State income tax returns
State income tax preparation with multi-state allocation for individuals and businesses operating across multiple jurisdictions. Particular attention to California, New York, and other states with active crypto enforcement.
Estimated tax planning
Quarterly estimated tax projections that account for both traditional income and unrealized crypto positions, with safe-harbor calculations to avoid underpayment penalties.
Entity selection & structure review
Advisory on entity selection for new ventures (LLC vs. S-corp vs. C-corp) and structure review for existing entities, taking into account crypto activity, founder comp structure, and growth trajectory.
Business & Individual Tax Engagements Typically Fit
Clients whose tax situation crosses the boundary between traditional income and digital asset activity – where splitting the return across providers introduces inconsistency.
Web3 founders with mixed compensation
Founders of crypto-native companies receiving combinations of W-2, equity, tokens, and possibly investor allocations needing coordinated treatment across forms.
Crypto-native businesses
Companies organized as LLCs, S-corps, or C-corps with crypto on the balance sheet, accepting crypto payments, or paying contributors in tokens.
DAOs registered as legal entities
DAOs that have wrapped their operations in a legal entity (Wyoming DAO LLC, Cayman foundation with U.S. operating LLC, etc.) and need annual U.S. tax filings.
HNW individuals with mixed portfolios
Individuals with substantial traditional investments (real estate, securities, private investments, K-1 pass-throughs) plus a meaningful crypto portfolio.
Sole proprietors with multiple income streams
W-2 income plus freelance income plus crypto activity, where the right Schedule C and Form 8949 treatment depends on coordinated review of all sources.
Multi-state taxpayers
Individuals and businesses operating or earning income across multiple states, where allocation rules and source-of-income determinations meaningfully affect the return.
Real-World Examples
Engagements often begin in situations like these.
I'm a Web3 founder. I get $180,000 in W-2 from the company, a vested token grant worth roughly $300,000, restricted stock that won't vest for two years, and I do some angel investing in other crypto projects on the side.
A typical engagement coordinates four moving parts: the W-2 (straightforward), the token grant (ordinary income at vesting under § 83 absent an 83(b) election, with basis tracking going forward for capital gain on later sales), the restricted stock (no current income absent an 83(b) election, but planning matters), and the angel positions (token receipt income, then capital treatment on later dispositions). The return puts all of these on a single coherent Form 1040 with documentation supporting each.
Our LLC accepts USDC payments from clients in the U.S. and Europe, pays our developer contributors monthly in a mix of USDC and our governance token, and the founders sometimes draw distributions in tokens. We've never filed entity returns before.
Multi-step engagement: entity classification confirmed (single-member LLC, multi-member LLC, or elected S-corp/C-corp), Form 1065 or 1120-S prepared with proper handling of USDC revenue (ordinary income at receipt FMV), contributor payments (1099-NEC with FMV at payment), and partner/shareholder distributions in tokens (basis-reducing distributions for partnerships; potentially distributions or compensation for S-corps depending on facts). K-1s to founders flow into their personal returns coordinated in the same engagement.
I have W-2 income from my day job in California, K-1 income from a real-estate partnership in Texas, and I day-trade crypto from California. My prior CPA was great on the W-2 and K-1 but didn't address the crypto.
Multi-state Form 1040 with the W-2 sourced to California, the K-1 sourced per the partnership's apportionment, and crypto trading treated as either investment activity (capital gain/loss reported on Form 8949) or, where the trading volume and pattern support it, an analysis of whether trader-tax-status election is available. California return prepared with full federal-to-state conformity adjustments.
A Typical Engagement
Predictable phases. Entity work happens early; integration happens before any return is prepared.
Income source mapping
Inventory of every income source (W-2s, 1099s, K-1s, business revenue, crypto income events, dispositions), plus the entities involved (your personal return, plus any business returns we'll prepare).
Entity & structure review
Where relevant, a review of entity election (LLC vs. S-corp vs. C-corp), ownership structure, and operating arrangements that affect tax outcome. Recommendations come with the trade-offs explicitly laid out.
Integrated preparation
Business and individual returns prepared in coordinated sequence so K-1s flow correctly, crypto activity is consistently treated across the boundary, and any entity-level positions match the individual-level basis tracking.
Estimated tax & multi-state coordination
Quarterly estimated payments calculated using safe-harbor methods, multi-state allocations reviewed for consistency, and any state-specific elections made on time.
Review & filing
All returns reviewed with you before filing, with a single point of coordination across every form. You receive a complete file: federal and state returns, K-1s issued from any pass-through entities, supporting workpapers, and the documented rationale for any judgment positions.
Relevant IRS Guidance
Integrated business and individual tax work draws on the full Internal Revenue Code, plus crypto-specific guidance. These are the primary authorities a typical engagement relies on.
IRC § 61
The gross income definition. Catches crypto received as compensation, payment for services, business revenue, and most on-chain receipts in the absence of specific exclusionary guidance.
IRC § 83
Property transferred in connection with performance of services. Drives the timing of income recognition on vesting token grants, restricted token units, and 83(b) election analysis.
IRC § 162
Ordinary and necessary business expenses. Drives deductibility analysis for business-related crypto expenses (mining electricity, gas fees, validator infrastructure, contributor payments).
IRC § 1402 & SE tax
Self-employment tax provisions. Apply to Schedule C income from crypto activity (NFT creators with regular sales, miners operating as a trade or business, etc.).
Forms 1099-MISC, 1099-NEC, 1099-DA
Information returns that businesses paying contributors in crypto, or receiving crypto income, are typically required to issue or receive. Reconciliation is part of the integrated engagement.
Notice 2014-21
Property classification governing the underlying crypto reporting that integrates with traditional income on both individual and business returns.
FAQs About Business & Individual Tax with Crypto
Questions clients ask about integrated business and crypto tax. Each links to a fuller answer in our FAQ.
Coordinated Tax Filings, Done Once
One engagement covers your individual return, your business returns, and your crypto activity – coordinated from the start. Book a free 30-minute consultation to scope your situation.
Book a Consultation