QSBS: pay zero capital gains tax.
A heavy argument in favor of structuring your newly acquired entity as a C-Corp is the opportunity to classify as Qualified Small Business Stock. If you qualify, stock sales are exempted from federal capital gains tax (23.8%) up to $10m per shareholder!
The 3 main requirements: entity is a C-Corp, at least 5 years old, and <$50m of gross assets.
Why does QSBS even exist?? Per my conversation with Steve Miller, the former IRS Commissioner, QSBS was initially codified to incentivize investors and employees to invest their money/time into startups.
