Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Simple Agreements for Future Equity, otherwise known as SAFEs, exist thanks to the startup accelerator Y-Combinator’s 2013 innovation. With a SAFE, an investor makes a cash investment in a company, but the … Read More
What is a family limited partnership? A family limited partnership, or "FLP", is a legal entity established when two or more members of a family create a partnership. The partnership is set up as a holding company, and the holdings may include business interests, real estate, securities, and … Read More
Can I ask the IRS if my company qualifies as a Qualified Small Business? Taxpayers can seek guidance from the IRS to determine whether their company or a company in which they are a shareholder meets the definition of a Qualified Small Business (QSB). This would involve requesting … Read More
If there was a simple “yes or no” equation for this question, this would be a very short article. The reality is more complex, since individual circumstances will impact how companies handle QSBS-related requests. Because both the company and the individual shares held need to qualify, this … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform If you have stock options you could be in for a big surprise because the various tranches of stock options can qualify for the QSBS 100% capital gains tax exclusion depending … Read More
Not sure if the stock you’re invested in is QSBS, learn more about QSBS Validation Reports Qualified Small Business Stock (QSBS) is a tax incentive that I have found few are aware of and even less understand. Once you start to unpack it, you realize its importance if … Read More
Suppose ABC Corp hired a CFO and granted them 5% of the employee stock option pool that vests over 2 years. At the time of the granting and vesting the company qualified as a Qualified Small Business and therefore the stock and stock options qualified as … Read More
To pin down if your stock options qualify for QSBS, whether exercised or not, you should first run through the QSBS criteria to ensure that the underlying stock is QSBS qualified. Explore the basics of QSBS here. If your company recently had a round of financing, the … Read More
YESSSS it is possible to make a "tax-free investment" without needing to qualify as a 501(c)(3) nonprofit, government entity, or investing in municipal bonds. Navigating the tax code is like playing chess, you need to have a strategic gameplan with various scenarios mapped out to make your … Read More
QSBS + Stock Options = Maximized Returns If you are an employee or contractor and you have received stock options there are a few questions that are imperative to ask upfront (i) what are the tax effects, (ii) when should I exercise my stock options, (iii) do my … Read More