Are SAFEs Safe for QSBS?

Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Simple Agreements for Future Equity, otherwise known as SAFEs, exist thanks to the startup accelerator Y-Combinator’s 2013 innovation.  With a SAFE, an investor makes a cash investment in a company, but the … Read More

Family Limited Partnerships and QSBS

What is a family limited partnership? A family limited partnership, or "FLP", is a legal entity established when two or more members of a family create a partnership. The partnership is set up as a holding company, and the holdings may include business interests, real estate, securities, and … Read More

Impact of QSBS on Stock Options

Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform 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 … Read More

QSBS Stock Options Example

Suppose ABC Corp hired a CFO and granted them 5% of the employee stock option pool that vests over 2 years. At the time of the granting and vesting the company qualified as a Qualified Small Business and therefore the stock and stock options qualified as … Read More

QSBS Implications of Stock Options

To pin down if your stock options qualify for QSBS, whether exercised or not, you should first run through the QSBS criteria to ensure that the underlying stock is QSBS qualified. Explore the basics of QSBS here. If your company recently had a round of financing, the … Read More

Tax-Free Investment

YESSSS it is possible to make a "tax-free investment" without needing to qualify as a 501(c)(3) nonprofit, government entity, or investing in municipal bonds. Navigating the tax code is like playing chess, you need to have a strategic gameplan with various scenarios mapped out to make your … Read More

QSBS Stock Options

QSBS + Stock Options = Maximized Returns If you are an employee or contractor and you have received stock options there are a few questions that are imperative to ask upfront (i) what are the tax effects, (ii) when should I exercise my stock options, (iii) do my … Read More