Investment Fund

SAFE QSBS

Are SAFEs Safe for QSBS?

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

QSBS Convertible Note

"Never invest in anything that eats or needs repairing." - Billy Rose Putting Section 1202 QSBS (i.e. qualified small business stock) and convertible note ("QSBS Convertible Note") in the same sentence is a recipe for an "investment needing repaired". If you have stumbled upon this page there are … Read More

Forming a Management Holding Company for QSBS

Another avenue could be to create a management holding company where the insurance, finances, and payroll are managed. According to the AICPA, a qualified small business for Section 199A QBI can be a management holding company. Tax accountants and lawyers have been looking to Section 199A for … Read More

QSBS Stock Acquisition with a Holding Company

The graphic below illustrates the ownership structure after 100% of the stock is acquired in a qualified small business. The PE fund would form a holding company that would issue QSBS to the PE fund after infusing capital into the holding company. The holding company would then … Read More