Unlocking a $10 Million Tax Break: QSBS Strategies for Startup Founders

Written By Cora

Qualified Small Business Stock (QSBS) is a powerful tax incentive that can potentially let founders exclude up to $10 million in capital gains (or 10× your investment basis) from federal taxes when selling company’s stock .

The key requirements

  • the startup must be a C-corporation, have gross assets under $50 million at issuance, and the shares must be held for 5+ years .

  • the huge tax savings provides for a lucrative IPO or acquisition, essentially a reward for long-term investment in your own business.

  • with potential tax reforms looming in 2025, QSBS isn’t currently targeted for change , but founders should plan early (e.g. ensuring C-corp status and documentation) to lock in this benefit and stay compliant as regulations evolve.

Cora

With 10 years of experience managing wealth for millionaires, billionaires, and BigLaw firm partners across mainland China, Hong Kong, Los Angeles, San Francisco, and Silicon Valley, Cora brings a unique fusion of expertise in global deal sourcing, structured financing, portfolio management, capital markets, and investment banking solutions. Having managed over $3 billion in assets and worked with hundreds of business leaders, she drives strategic cross-border solutions and fosters a collaborative ecosystem. Licensed in three jurisdictions, Cora is adept at navigating regulatory complexities in dynamic markets.

https://www.linkedin.com/in/coragao/
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