QSBS Before 5 Years or Beyond $10M
Exiting and fundraising founders can see 41-79x return on the net cost of QSBS Rollovers in the form of tax savings.
Founders, employees, and investors can all benefit from QSBS rollovers
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Founder Selling Shares
Founders may reach a point of liquidity through the sale of stock in a number of ways. Whether you’ve taken money off the table via a secondary sale through a Series B, sold on a private exchange, or had your stock purchased by another outside investor, we can help you preserve your QSBS benefit.
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Secondary Sale of Stock
Especially during later or larger rounds of funding, early investors and founders may have the opportunity to sell stock. Whether a secondary sale happens before 5 years, or the gain amounts to more than $10M, a rollover can be a great option.
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LP with a Distribution
As a limited partner, receiving a distribution before the 5-year QSBS holding period can raise questions about preserving your tax benefits. Whether your fund’s early exit stems from an acquisition, tender offer, or secondary sale, we can help you navigate QSBS rollovers to ensure you maximize flexibility.
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Mergers and Acquisitions
Exiting through a company sale or M&A before the 5-year QSBS holding period—or when your individual gain exceeds $10M—doesn’t mean losing out on QSBS benefits. By utilizing a QSBS rollover, you can potentially save up to 100% of your tax bill. Let us help you navigate this critical step to maximize your exit's value, regardless of stock holding period or exit size.
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Employee Selling Shares
Early employees often face unique opportunities to realize the value of their shares through tender offers, secondary sales, or other liquidity events. Whether you're navigating a company buyback, a private transaction, or an offer from an external investor, we can help you maximize and preserve your QSBS advantage.
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Investor With a Quick Exit
As an angel investor, exiting early can unlock liquidity but may create challenges in preserving QSBS tax benefits. Whether your shares were sold in a tender offer, acquisition, or other early liquidity event, we can guide you through QSBS rollovers to help you maintain your tax advantage and maximize your return.
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Private Company Near IPO
An upcoming IPO can open the door to significant liquidity opportunities, but it’s also the perfect time to plan for preserving your QSBS benefits. Whether you're considering a partial sale, tender offer, public market sale, or other pre or post-IPO exit strategies, we can help you navigate QSBS rollovers and tax planning to ensure you maximize your gains while staying tax-efficient.
Defer Your Tax Bill, Exclude Your Gains
5-Year Hold Period: If you sold your stock before the 5-year hold required by the IRS for QSBS exclusion, a rollover is your only option for deferring, and later avoiding, a large gains tax bill.
$10M Exclusion Cap*: If you had a large exit and your gain exceeded the $10M exclusion cap for QSBS, a rollover can expand your QSBS eligibility with more liquidity and control than other common planning strategies such as Trust Stacking.
*Or 10x adjusted gross basis in the stock.
