QSBS BBBA

QSBS and The Growth of Crowdfunding: StartEngine

Equity investments that fund and grow innovative new companies in the startup marketplace move the national economy forward and propagate job creation. These types of investments are innately risky capital investment ventures, and not all investors see profitable returns. Additionally, many taxpayers have been unable to participate … Read More

Startup Employees QSBS

QSBS and The Growth of Crowdfunding: SeedInvest

Equity investments that fund the startup marketplace are crucial and necessary in moving the national economy ahead and boosting job creation. However, these investments are innately risky ventures, and lucrative return on investments (ROIs) don't always come to fruition. Until recent years, many taxpayers have been excluded … Read More

QSBS Founders

QSBS and The Growth of Crowdfunding: Wefunder

Equity investing is an inherently high-risk-high-reward venture, a positive ROI is not guaranteed, and historically not all taxpayers are qualified to participate in the most lucrative investment opportunities. But investments in innovative startups are inarguably essential in moving the national economy forward and contributing to job creation.  For … Read More

Does Manchin’s Rejection of the Build Back Better Act Save QSBS?

Investors and the collective startup community remain hopeful that QSBS tax exemptions will remain intact after Democratic Senator Joe Manchin of West Virginia confirmed his decision to oppose the Build Back Better Act (BBBA). Senator Manchin expounded on the details of his opposition to the bill on … Read More

Resources: Company Formation, Qualified Trade or Business

Qualified Trade FAQ Which types of companies qualify as QSBs and which don't? Section 1202 defines Qualified Trades or Businesses in the negative, noting the types of businesses that are not eligible to issues QSBS.   According to Section 1202(e)(3) a “qualified trade or business” is any company other than: “Any trade … Read More

Resources: Company Formation, Gross Asset Test

Gross Asset Test FAQ What is the Gross Asset Test? The QSBS “gross asset test” or “size test” requires that the aggregate gross asset value of the business must be below $50 million at all times before and immediately after the issuance of QSBS. If gross assets have ever … Read More

Resources: Company Formation, Active Business Requirement

Active Business Requirement FAQ What is the Active Business Requirement? The QSBS Active Business Requirement requires that “at least 80 percent (by value) of the assets” of the corporation are used in the “active conduct of one or more qualified trades or businesses during substantially all of the taxpayer’s … Read More