News & Analysis as of

Qualified Small Business Stock

Farrell Fritz, P.C.

When SAFE is Stock: Implications of Series SAFE Preferred

Farrell Fritz, P.C. on

Early-stage startup financings have long reflected a tension between transactional efficiency and legal precision. Instruments such as convertible notes and SAFEs were developed to reduce cost and execution time at the seed...more

Hanson Bridgett

Policy Shift in Washington State: Proposed Law Would Tax QSBS Gains

Hanson Bridgett on

Washington has long been viewed as a tax-efficient jurisdiction, historically imposing no personal income tax on individuals. In 2021, the Washington State Legislature enacted a capital gains tax law, taking effect for gains...more

Mintz - Venture Capital & Emerging Companies...

MintzTech Connect Feature: Series SAFE Preferred

As we enter what we expect will be another dynamic year for the venture capital ecosystem, one theme remains constant: the need for structural clarity in early-stage financing. Founders and investors alike are seeking tools...more

Mintz - Venture Capital & Emerging Companies...

MintzTech Connect Client Spotlight: Conductive Ventures

Our client spotlight in this edition features Conductive Ventures, a Palo Alto–based venture capital firm that manages $450 million in capital across three funds. Conductive Ventures invests in early-stage, capital-efficient...more

Ballard Spahr LLP

Washington State Legislature Introduces Bill to Expand Capital Gains Tax to Qualified Small Business Stock

Ballard Spahr LLP on

The Washington State Legislature has recently introduced Senate Bill 6229 (and complementary House Bill 2292), which would impose the State’s capital gains tax to gains realized from the sale of Qualified Small Business Stock...more

Husch Blackwell LLP

QSBS: Savor the Savings—A Founder’s Recipe for QSBS Savings

Husch Blackwell LLP on

For CPG founders, understanding the complexities of business structures and tax consequences is essential to maximize growth and attract investors. The Qualified Small Business Stock (“QSBS”) exclusion provides considerable...more

Offit Kurman

M&A Nugget: Qualified Small Business Stock Update

Offit Kurman on

In 1993, Congress passed a tax law intended to incentivize entrepreneurs to invest in early-stage companies. This tax law, often referred to as QSBS (Qualified Small Business Stock) allows stockholders to exclude from tax a...more

Orrick, Herrington & Sutcliffe LLP

Risk and Reward: How Starting Your Business as an LLC Could Impact QSBS Tax Savings (UPDATE)

As a founder, deciding whether to organize your business as a corporation or a limited liability company (LLC) is a crucial first step. Corporations are often favored for their ability to attract venture capital and offer...more

Mintz Edge

Choice of Business Entity: Pros and Cons of Corporations and LLCs

Mintz Edge on

When launching your startup, there’s no shortage of big decisions to make, but one of the most impactful at the early stages is choosing the right legal structure. Choosing the right form of entity lays the foundation for how...more

Bressler, Amery & Ross, P.C.

Maximizing Benefits When Corporate Employees Receive Equity for Services

Employees frequently receive compensation in forms other than salary, commissions, or bonuses. Employers may instead offer equity in the company at which the employee works....more

Pillsbury - Propel

Estate Planning for Founders – Part III: Intentionally Defective Grantor Trusts

Pillsbury - Propel on

This is the third of a four-part series focusing on estate planning for founders. In this installment, we will cover why an Intentionally Defective Grantor Trust (IDGT) may be an effective estate planning tool for founders. ...more

Royer Cooper Cohen Braunfeld LLC

5 Easy But Effective Year-End Tax Strategies That Can Meaningfully Cut Your 2025 Tax Bill

As 2025 comes to a close, business owners and other high-income individuals still have an opportunity to make strategic moves that can materially reduce their tax liability and improve cash flow....more

FBT Gibbons LLP

Planning for the Sale of Qualified Small Business Stock (QSBS)

FBT Gibbons LLP on

Section 1202 provides an exclusion from capital gain when a stockholder sells qualified small business stock (QSBS) if all of Section 1202’s eligibility requirements have been satisfied. The One Big Beautiful Bill Act (OBBBA)...more

Warner Norcross + Judd

Making a List and Checking It Twice: Year-End Planning Ideas, Part 1 of 2

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As 2025 draws to a close, there are several areas in which high-net-worth taxpayers should be focusing their attention to maximize tax savings for the year and plan for changes to tax law in the year ahead. Use Qualified...more

Katten Muchin Rosenman LLP

2025 – 2026 Planning Priorities - 2025 Year-End Estate Planning Advisory

This year's planning season arrives amid sweeping tax and regulatory changes that affect income, wealth transfer, business, trust administration and reporting. The enactment of the One Big Beautiful Bill Act (OBBBA) reshaped...more

Pillsbury - Propel

Why Startup Founders Should File an 83(b) Election

Pillsbury - Propel on

For recipients of restricted shares in a startup (i.e., private company), equity is often the most valuable part of their compensation packages. However, how and when that equity is taxed will make a significant difference in...more

Katten Muchin Rosenman LLP

Business Income Tax Planning in Light of the OBBBA: What Owners and Investors Need to Know

The One Big Beautiful Bill Act (OBBBA) brings increased predictability for business owners, founders, family offices and investors in many tax planning aspects. Individual and corporate tax rates stay put, qualified small...more

Rivkin Radler LLP

Qualified Small Business Stock – Be Mindful of the ‘Acquisition Dates’ When Applying OBBBA’s Enhanced Gain Exclusion Rule

Rivkin Radler LLP on

The enactment earlier this year of the One Big Beautiful Bill Act (the “Act”)generated a fair amount of excitement in the business community. If one had to identify a single provision of the Act in which the owners and...more

Procopio, Cory, Hargreaves & Savitch LLP

5 Action Items Required Now Before Selling Your S Corporation in Two Years

Selling a business is one of the most significant events in an entrepreneur’s life. Most of the transaction process will be driven by the market, a buyer’s goals, or industry dynamics outside of the seller’s control. There...more

Steptoe & Johnson PLLC

Key Q4 Tax Updates for Businesses

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With the fourth quarter underway, recent changes to federal tax law made by the One Big Beautiful Bill Act (OB3) remain at the forefront of business planning for operations, investments, and acquisitions. OB3 became law July...more

Lathrop GPM

The Sunset That Didn’t Set: OBBBA and the Future of Tax Planning

Lathrop GPM on

The enactment of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, brings clarity on key provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) that were set to expire at the end of 2025. ...more

Williams Mullen

[Event] 2025 Fall Tax Forum - November 5th, Richmond, VA

Williams Mullen on

Join Williams Mullen attorneys for our 2025 Fall Tax Forum, where we will dive into key developments shaping the U.S. federal tax landscape following the enactment of the One Big Beautiful Bill Act (the “OBBBA”) this past...more

Holland & Knight LLP

Redemption Limitations Remain a Trap for the Unwary Despite Section 1202 Expansion

Holland & Knight LLP on

Starting on July 5, 2025, the One Big Beautiful Bill Act (OBBB) has amended Internal Revenue Code Section 1202 to provide additional benefits to owners of qualified small business stock (also known as QSBS within the meaning...more

Mintz - Venture Capital & Emerging Companies...

MintzTech Connect: All Things Technology — October 2025

One of the remarkable things about the US economy is the robust nature of startups and emerging companies. These new enterprises drive growth and create jobs, and in turn fuel additional economic activity, creating a...more

Mintz - Venture Capital & Emerging Companies...

MintzTech Connect Industry News: Spotlight on Conductive Ventures

Our client spotlight in this edition is on Conductive Ventures, a Palo Alto–based venture capital firm that manages $450 million in capital across three funds. Conductive Ventures invests in early-stage, capital-efficient...more

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