You Bought a SAFE. Who's Protecting Your QSBS?
Angels investing on SAFEs are the most QSBS-exposed investors on the cap table and the least protected. A one-page side letter with an annual certification fixes it.
The Startup Law Blog
Practical legal guidance on QSBS (Section 1202), equity compensation, startup formation, financing, and Washington State tax issues for founders, investors, and startup employees.
Latest posts
You Substantiate the $50 Lunch. Why Not Your QSBS Exclusion?
The NVCA venture forms address Section 1202 at closing and then go silent. Several core QSBS requirements are continuous tests, not issuance tests. The forms should require an annual certification.
The Washington Founder's QSBS Playbook: How to Qualify, Document, and Defend Your §1202 Exclusion
For Washington founders, §1202 is the single most valuable tax provision in the federal code. Here's how to qualify, document, and defend the exclusion across both pre- and post-OBBA regimes.
Treasury Signals Crackdown on QSBS Trust Stacking: What Founders Should Do Now
Treasury Assistant Secretary for Tax Policy Kenneth Kies signaled this week that Treasury is working on guidance to address QSBS trust stacking. Here's what founders should do now.
Have You Done Your QSBS Substantiation This Year?
Most founders treat §1202 substantiation as something their lawyer does at exit. By then, the easy substantiation is gone. Here's why it should be an annual practice — and exactly what to do this week.