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 $750 million at a $35 billion valuation.

One factor we are sure of is the Company was incorporated  in 2005; therefore, if you are a stockholder you could qualify for 100%, 75%, or 50% in tax savings. Check out a few other details we have already hashed out for you below:

Corporation:  UiPath

Description:  UiPath designs and develops robotic process software for automating office work. 

Incorporation Date:  June 9, 2015 as Delaware C Corporation, which is a qualified legal entity for QSBS

Liquidation event details (date, type, etc.): The first round of financing that was above $50M was on March 6, 2018, which was a Series B round of financing with total funding of $153M. Therefore, it is safe to assume any stock issued after this date will not qualify but any stock issued before likely will. 

QSBS Potential:  The Company is a technology-based software designer and developer, which is a qualified QSBS industry. The Company had not raised over $50M until March 6, 2018, which assumes the Company met the asset test beforehand. There is a strong likelihood that any stock issued before 2018 could qualify for QSBS, assuming no redemptions and the Company meets the active test.

If you obtained shares in UiPath prior to March 2018, please contact us to evaluate your potential 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.

About QSBS Expert

QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.