Search Results for: what is qsbs
Capital Connect QSBS Eligibility
Capital Connect Companies // QSBS Analysis
The Exclusion of Consulting Firms from QSBS Eligibility: Determining True “Consulting” Status and the Broader Implications
According to the Internal Revenue Code Section 1202 (I.R.C. §1202), investors can benefit from a substantial tax advantage through Qualified Small Business Stock (QSBS). Under this section, a complete exemption from federal capital gains taxes on profits gained from the sale of QSBS stock held for a … Read More
Should an LLC convert to a C-corporation to benefit from QSBS?
If you're a business owner, you may be wondering if converting your business from an LLC to a C-corporation is the right move for you. There are a number of factors to consider when making this decision, including your business's size, its stage of development, and its … Read More
Early-Stage Valuation and QSBS
In a recent article about the state of pre-seed valuation, Brett Calhoun of ScaleVC discusses the challenges of valuing pre-seed startups and how to avoid overvaluation. Calhoun notes that pre-seed startups are often overvalued because they have little to no track record and are therefore difficult to … Read More
Leveraging The Original QSBS, IRC Section 1244 in Capital Losses
The Internal Revenue Code (IRC) Section 1244 is a provision that often remains underutilized by small businesses, primarily due to lack of awareness. This provision can provide significant tax benefits, particularly in instances where business investments do not yield the expected returns. In this article, we aim … Read More
QSBS Company Onboarding – Get Started
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Preserving QSBS During Banking Turmoil
Upon the collapse of Silicon Valley Bank, First Republic Bank and other banks during 2023, many companies moved cash which may pose risks for QSBS eligibility in various ways. Excess Cash or Other Holdings (perhaps from drawing down on lines of credit) may cause a company to fail … Read More
QSBS Legislation Seeks to Expand Access to QSBS Benefits
Qualified Small Business Stock (QSBS) provides a great incentive to fuel innovation in the US, by providing eligible shareholders with an up to 100% capital gains tax exclusion. QSBS helps to drive capital to endeavors that are “too risky” for many to fund, but such early-stage businesses … Read More