Qualified Small Business Stock ("QSBS")


Many people have become increasingly interested in this area that is not necessarily new, but is often overlooked or misunderstood.  We help our clients navigate this complex code section in possibly avoiding paying federal capital gains tax at the greater of $10 million or 10 times your tax basis.  The rules for state exclusion will vary based on your state of residence.  There are specific requirements that need to be met in order to qualify for this exclusion.  Our specialists focus on this section well as it relates to entrepreneurs, their companies, and investors and making sure the requirements are met in order to qualify for this exclusion.


Services include:

  • Review of your current agreement in place as it relates to your investment/holding in the company
  • Assistance with understanding of equity-based compensation – incentive stock options (ISO), nonqualified stock options (NSO), restricted stocks (RSU)
  • Assistance with entity conversion to utilize this benefit
  • Assistance with maximizing the utilization of the exclusion
  • Review tax consequences as it relates to liquidity events from secondary sales, IPO, M&A events
  • Cash flow analysis as it relates to liquidity and tax liability events
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