As we reach the halfway mark through 2021, U.S. IPOs are already hitting an annual record. This year’s initial public offerings already total $171 billion, overshadowing 2020’s record high of $168 billion. The year of 2021 has consistently been moving ahead with longer strides than 2020: the average … Read More
Going public via a Special Purpose Acquisition Company (SPAC) acquisition is quickly becoming one of, if not the main way to IPO. The number of SPAC IPOs rose at a value of 320% from 2019 to 2020. Also, as of April 30, 2021, there were nearly double … Read More
Robinhood Markets’ highly-anticipated IPO has resulted in substantial growth for the financial services company. In March 2020, Robinhood had 7.2 million retail clients, and a year later that number has risen to 18 million. The brokerage now manages an impressive $80 billion in customer assets, many of … Read More
After its impressive launch, the Chinese ride-hailing company Didi Global fell more than 10% on the New York Stock Exchange just two days later. This comes on the heels of China’s cyberspace agency announcing an investigation to assess possible security risks. The company made a statement that … Read More
The Court Ruling That Brought Notice to NYC Corporations A recent New York City ruling regarding capital gains tax is catching the attention of corporations doing business in the city. Back in 2010, a fund owned by investment bank Goldman Sachs sold a hedge fund manager—a financial company … Read More
On September 02, 2016, the IRS released Private Letter Ruling (PLR 201636003), addressing whether, after several name changes to the company and a conversion from a LLC to a C-corporation, does the reorganization under § 1202(h) and § 368 have any effect on the stock—having no formal … Read More
On April 28, 2017, the IRS released Private Letter Ruling (PLR 201717010), addressing whether a Founder of a C-corporation operating in the services for health providers is qualified for the partial exclusion of gain under the Section 1202(a). Additionally, whether the corporation meets QSBS criteria for being … Read More
Employees of startups can find the world of stock options and financing rounds to be overwhelming, which may lead to missed opportunities. Even though QSBS is still a new term to experienced investors, employees of small businesses, and startups. They should familiarize themselves with the tax benefits … Read More
As more and more small business owners and investors familiarize themselves with the term QSBS, they may be eager to learn if and how they can qualify for this attractive tax incentive. Ineligible Industries Outlined under Section 1202 Instead of outlining eligible industries, Section 1202 of the IRC outlines … Read More
Qualified small business stock (QSBS) has been around with its associated tax benefits since 1993 with a rise in interest concerning section 1202--which outlines QSBS--after TCJA went into effect. The Tax Cuts and Jobs Act, which was enacted on January 1, 2018, specifies many changes that affect both … Read More