Tax
QSBS (Qualified Small Business Stock)
Quick definition
Tax exemption for gains on qualifying startup stock held 5+ years.
Under IRC Section 1202, gains on QSBS held 5+ years can be excluded from federal tax (up to $10M or 10x basis). Founders and early employees should confirm QSBS eligibility at the time of grant — it's one of the most valuable tax breaks available to startup employees.
Related tax terms
R&D Tax Credit
Federal credit for qualified research expenses, usable against payroll tax by startups.
Delaware Franchise Tax
Annual tax for Delaware corporations, often quoted wildly too high if calculated incorrectly.
Nexus (Sales Tax)
The connection with a state that triggers a tax-collection obligation.
Section 83(b) Election
Tax election for restricted stock holders to be taxed on grant-date value instead of vesting value.
See this in action
Insights and tools where QSBS (Qualified Small Business Stock) shows up.
Service spotlight
Planning a QSBS-eligible exit?
Our tax team handles §1202 elections, basis tracking, and §1045 rollovers — and runs the math state-by-state so you know exactly what you'll owe.
