Qualified Small Business Stock (QSBS) is stock that may qualify for favorable U.S. tax treatment under Internal Revenue Code Section 1202, potentially allowing eligible holders to exclude a portion (or all) of capital gains if requirements are met (including holding period and issuer eligibility). In venture-backed startups, Qualified Small Business Stock (QSBS) planning is often discussed with founders and early employees, and QSBS eligibility can influence entity choice, asset tests, and timing of stock issuance.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
