Meliora Consulting

Key takeaways QSBS (Qualified Small Business Stock) can let eligible founders and investors exclude a large amount of gain from federal tax when qualifying C corporation stock is sold — potentially up to $15 million per company. The exclusion is applied at the taxpayer level, per issuer. One investor can use it across multiple qualifying companies. That's the part most people underestimate. Qualification is decided years before an exit — at formation, at each stock issuance, and through how...

Key takeaways "LLC vs. S corp vs. C corp" is a bit of a trick question: an LLC is a legal entity, while S corp and C corp describe federal tax treatment. An LLC can even elect to be taxed as either. There's no universally "best" entity. The right structure depends on where the business is going — how owners are paid, whether profits are reinvested or distributed, and whether you expect outside investment or an exit. Profitable owner-operated businesses often lean S corporation. Businesses...

Key takeaways The One Big Beautiful Bill Act (OBBBA) made QSBS more generous in three ways: a shorter path to the exclusion, a larger exclusion, and a higher company-size ceiling. The new rules apply to qualifying stock acquired after July 4, 2025. Stock acquired on or before that date keeps the old rules. Your acquisition date is now the hinge everything turns on. The biggest shift: you may no longer have to wait five years. A tiered exclusion now gives 50% at three years, 75% at four, and...