QSBS Basics

S Corporations QSBS Problem and Solution

Qualified Small Business Stock ("QSBS") is a tax incentive that provides up to a 100% capital gains tax exclusion to stockholders of a qualified C Corporation, not an S Corporation. If you are a founder and were advised to structure your company as an S Corporation because … Read More

Coursera Stock and QSBS Post IPO

Stock in Coursera began trading with a double-digit gain after the online education company late Tuesday priced an initial public offering at the high end of the range investors had been told to expect. The stock opened for trading on March 31, 2021, at $39, up about 18% from … Read More

UiPath Stock and QSBS

Congrats if you are an early employee of NYC-based unicorn startup UiPath who exercised your stock options! You could be in for some serious cash and potentially serious tax savings.  It has been reported that UiPath has confidentially filed to go public through a direct listing after raising … Read More

IMPACT OF QSBS ON STOCK OPTIONS

If you have stock options you could be in for a big surprise because the various tranches of stock options can qualify for the QSBS 100% capital gains tax exclusion depending on when the stock holding period starts, whether the company is a qualified business, and when … Read More

The QSBS Exemption in Virginia

Virginia follows the tax exclusion (100%) on capital gains from the sale of Qualified Small Business Stock (QSBS) (as per IRC Section 1202). Therefore, any capital gains that might have occurred on QSBS sales will not only be excluded from federal income taxes but also state income … Read More

Do PBCs or B Corps Qualify for QSBS?

Most importantly not only can you provide a public benefit with your company's mission but also elect to receive the C Corporation tax exemptions as a PBC (i.e. Public Benefit Corporation) or B-Corp. PBCs and B-Corps can qualify for Section 1202 Qualified Small Business Stock (QSBS). PBCs … Read More