Venture Capitalists & Private Equity Taking Advantage of QSBS

Since late last year we have been gearing our attention towards Qualified Small Business Stock. Now there are a number of reported venture capitalists and private equity groups structuring their start ups to qualify for these tax benefits.

As we have previously written, this often overlooked provision of the law allows investments in qualified small business stock that is issued in 2011 and held for 5 years to exclude 100% of the gain on the sale of the stock without any alternative minimum tax implications. This may be a great way to structure your company to attract outside investment.

Since there is so much interest in this topic currently, we will write and publish a more technical overview of the provisions.  It will be pretty dry stuff, but well worth the read for those interested in raising capital or investing in start up ventures. Keep an eye out for next weeks post.

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