OpenPhone is a business phone application. It lets users add a work phone number to existing devices.
Please note, it is important to assess the company’s business activities against Section 1202(e)(3) which specifies certain industries that are not considered a “qualified trade or business.”
Per Section 1202, entities need to be a C Corporation or equivalent in order to issue QSBS. Refer here for further details.
Any individual owning stock purchased or received directly from the company could potentially be eligible for the QSBS capital gains tax exclusion or the Section 1045 gain rollover if the QSBS standards as per IRC Section 1202 were met at the time of issuance.
In order to assess whether stock issued previously may qualify, the Company would also have to have not taken actions that invalidate QSBS status such as a certain level of redemptions, and would have to satisfy the active business requirement.
Do you hold stock in this company?Validate QSBS Eligibility
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.