Qualified Small Business Stock (QSBS)


Lawmakers are well aware of the significant contributions to economic and job growth made by small businesses. As a direct incentive for starting and investing in small businesses, Congress has provided varying levels of beneficial treatment in the tax code for Qualified Small Business Stock (QSBS) since 1993. However, recent tax law changes, including the reduction of the C Corporation tax rate to a flat 21%, have made C Corporation status and QSBS treatment more attractive. Entrepreneurs and investors should seriously consider the often-overlooked incentives for starting or investing in Qualified Small Businesses.

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