Daemon
Daemon.tax automates R&D tax credit filings for software startups by connecting directly to engineering systems and analyzing code commits and completed issues. The platform uses LLMs to qualify projects and build defensible wage allocations, enabling startups to complete filings in days without interviews. Pricing starts at 0.60% of qualified expenses, capped at $2,450.
- Financial Technology
- Artificial Intelligence
- Software Only
- Regulatory & Compliance Technology
Funding
Founders
Founder details are not available yet.
Product
Problem
Software startups often miss out on R&D tax credits due to complex qualification rules and the high cost of consultants who charge up to 25% of credits. Manual documentation requires extensive technical team interviews and surveys, creating a time-consuming process with audit risk if estimates lack evidence.
Solution
Daemon.tax automates the entire R&D tax credit filing process by connecting directly to engineering systems and analyzing digital output. The platform reviews every code commit and completed issue, using LLMs to qualify projects and build defensible wage allocations at scale. Startups complete filings in days without scheduling interviews, as Daemon runs autonomously in the background to document a full year of work. The system generates credit-optimizing expense allocations and prepares IRS submission forms, making audit-proof documentation affordable for organizations of all sizes.
Target Audience
Primary users are software startups with gross receipts under $5 million that want to claim payroll tax credits, including early-stage companies with engineering teams ranging from 1 to 50+ contributors.
Features
- Automated analysis of engineering artifacts via API integrations with development systems
- LLM-powered processing of code commits and issues to prove R&D qualification
- Project-by-project qualification with defensible wage allocations
- No interviews or manual effort required from technical teams
- Security-first architecture with isolated analysis pods and zero data retention for LLMs
- Tiered pricing from 0.60% of qualified expenses (capped $2,450) to custom enterprise plans
- Supports payroll tax offsets up to $500K per tax year for eligible startups