Scope of Services: Carta Management Company Administration
Per annum pricing will be determined based on your individual management company entity structure, needs, and complexities.
Standard / Complex
I. Accounting Services
Accounting services are supported for USD-denominated entities only.
Financial Reporting
The following Carta system-generated year-end reports will be made available annually for the Management Company in the Carta platform:
Balance Sheet
Statement of Operations
Carta system-generated financial reports will be made available in the Carta platform.
Books and Records
Carta will update and maintain the accounting books and records for the management company. You will have easy, read-only access to review the books and records.
For the Management Company, Carta will:
Maintain annual accounting books and records (dependent on completion of fund’s books and records)
Grant read-only access on the Carta platform for review of books and records, including the balance sheet, income statement, and general ledger to individuals specified by you
Conduct capital transaction tracking by member (contributions and distributions)
Provide monthly open items list
Provide monthly cash reconciliation up to an average of:
Standard: 40 transactions per month
Complex: 80 transactions per month
Record and track intercompany payable and receivable balances between the management company and affiliated entities administered by Carta
Standard: Up to 3 affiliated entities
Complex: 4 or more affiliated entities
Record credit card and expense reimbursements on an aggregated basis by expense type and entity category as provided by Client on Carta-provided template
Record payroll within the Management Company's books and records
Non-cash accruals:
Standard: N/A - Carta will not process non-cash journals
Complex: Carta will process non-cash journals such as expense accruals, amortizations, etc. on an annual or quarterly basis
You will (1):
Provide executed copies of the Management Company’s W-9 and Operating Agreement
Provide updated Management Company ownership schedules
Provide additional verification of balance sheet items (as needed)
Provide responses to monthly open items list within 15 business days after receipt from Carta and within 5 business days for year end purposes
Provide clear and timely written instruction on any expenses paid by the management company on behalf of any other entities, whether administered by Carta or not, and create invoices that are sent to portfolio companies or other parties for services rendered, board feed, and/or any other monies due
Provide detailed breakout of credit card statements including expense and entity categorization on a monthly basis in tabular format (MS Excel or Google Sheets) on Carta-provided template
Utilize credit cards for management company expenses. Debit card usage is not permitted for Carta ManCo administration
Maintain any support necessary for any governmental or private audit
Engage with third-party payroll provider and maintain responsibility for full setup of payroll provider (including all employee changes) and provide Carta with read-only access to payroll platform
Non-cash accruals:
Standard: N/A - No non-cash support
Complex: Provide amounts and details such as vendors and dates related to non-cash accruals
Update expected budget values within the Carta GL on an ongoing basis
Access the Carta platform for self-serve monthly budget vs. actual reports available within the Carta GL
Banking and Payments
Carta will:
Set up electronic payments for all cash activity as requested
Carta will not process payments on third party platforms other than the approved client bank and bill.com
You will provide Carta (1):
Access to the management company’s bank account with your chosen banking partner as approved by Carta*, with the ability to set up payments (bank must have two step-authorization capability and account must be in the management company’s name)
Read-only access to bank account with the ability to set up wires
Vendor W-9s and email contact prior to initial payment
Wire or other payment instructions and invoices for expenses
Wire instructions, invoices, vendor email and W-9s for expenses and investments, create invoices that are sent to portfolio companies
You are responsible for:
Setting up bank accounts, one for each Carta administered entity, with your chosen banking partner as approved by Carta*
Final review and releasing of payments after you receive confirmation from Carta
Performing any call backs to your vendor
Depositing checks
Ensuring accurate user profile setup within the Carta platform
Establishing authorized access to your bank account
Resolving any failed, rejected, returned, or on hold payments due to additional information or documentation needed by your banking partner
* Change in banking partner may result in a fee adjustment.
These services are subject to the Venture Capital Payment Terms and Conditions.
Year-end Filings, Tax and Regulatory Reporting
Carta will:
Provide books and records, along with supporting documentation, to tax provider specified by you through Box
Distribute K-1s to partners
Process member draws:
Standard: Up to an average of once per quarter over the coverage period
Complex: Up to an average of once per month over the coverage period
Process payments related to regulatory reporting and fees
Manage the Form 1099 process electronically at year-end as approved, including filing with IRS on client’s behalf
You will:
Calculate and instruct member draws
Calculate any necessary owner allocations
Complete dissolution of the business at end of its life
Provide executed tax engagement letters and tax returns
Coordinate with your selected tax provider to file for an extension, as necessary
Complete any municipal, state, foreign, or federal reporting or regulatory filings. Such filings or reporting will not be completed by Carta
Ensure timely completion of regulatory business filings such as, but not limited to, Form ADV-1
Review and approve year end 1099 summary by vendor
To discuss any services that are outside of the scope addressed above, please talk to your Carta representative.
(1) Additional documentation or information may be required by Carta as circumstances warrant.
DISCLOSURE: This communication is being sent on behalf of Carta Investor Services, Inc. (“Carta”), an affiliate of eShares, Inc. dba Carta, Inc. Certain transactional fees may apply. This communication is not to be construed as legal, financial, accounting or tax advice and is for informational purposes only. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.