Daemon
Daemon.tax is an automated R&D tax credit platform for software startups, analyzing engineering data to document and claim credits worth up to $500K in payroll tax offsets. The platform connects to development systems via APIs, uses LLMs to process code commits and issues, and delivers audit-ready filings in days without interviews. Pricing is a percentage of qualified expenses, capped at $2,450 for teams of 1-6 contributors.
- Artificial Intelligence
- Financial Technology
- Regulatory & Compliance Technology
- Software Only
Funding
Founders
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