Seattle voters approved Proposition 2 on 4 November 2025, ushering in a major overhaul of the city’s business and occupation (B&O) tax. The measure, sometimes called the Seattle Shield Initiative, responds to a looming budget deficit and potential federal cuts by lowering taxes for most small businesses
Seattle’s payroll expense tax—often called the JumpStart Tax—continues to be a major cost factor for employers with a significant presence in the city. Who Must Pay You’re subject to the tax if your total Seattle payroll expense exceeds $8.837 million (2024 threshold, indexed annually) and
In late 2021, The New York Times ran a feature titled “A Lavish Tax Dodge for the Ultrawealthy Is Easily Multiplied.” It described how some Silicon Valley founders, including Roblox CEO David Baszucki, gifted shares of their companies to family members, effectively multiplying the Qualified Small Business Stock (QSBS) exclusion
Washington’s Department of Revenue (DOR) is tightening its approach to sales tax collection beginning in 2025. The changes reflect two themes that have been evolving for several years: expanding the scope of taxable “digital goods and services,” and strengthening compliance for out-of-state sellers and marketplace facilitators. 1. The Expanding
The 83(b) election is one of the most consequential decisions most startup founders ever face—yet it’s designed to punish oversight. It’s time to modernize the rule: make the election automatic unless you opt out.
By Joe Wallin, Seattle Startup Lawyer Equity compensation is one of the defining features of the startup world. It aligns incentives, attracts talent that’s willing to bet on the company’s future, and preserves precious cash. But it also introduces complexity—especially when it comes to valuation, taxation, and
The Section 83(b) election is a provision in the U.S. tax code that allows recipients of restricted stock to accelerate the recognition of ordinary income to the date of grant rather than when the stock vests. When you file an 83(b) election, you choose to pay income
Choosing the wrong entity structure can cost startup founders millions. Only C-corporations can issue Qualified Small Business Stock (QSBS) under Section 1202. Here’s why that matters — and how to preserve your shot at the $15 million tax exclusion.
Section 1202 and the Excluded Business Categories Section 1202 of the Internal Revenue Code allows founders and investors to exclude significant gains from the sale of qualified small business stock (QSBS). To qualify, the issuing corporation must meet an active business requirement and cannot be primarily engaged in certain excluded
ACA Webinar – QSBS, R&D, and Carried Interest Updates Post–H.R. 1 Why this webinar matters On July 4, 2025, President Trump signed the “One Big Beautiful Bill” Act (H.R. 1) into law following razor‑thin votes in both chambers of Congress. Although the legislation is sweeping
Disclaimer: This post is for informational purposes only and does not constitute legal or tax advice. Always consult a qualified advisor about your specific situation. Background – What Is QSBS? Qualified Small Business Stock (QSBS) refers to stock issued by a U.S. C‑corporation with gross assets not exceeding a
Washington’s EPOA requires employers to include pay ranges and benefits in job postings. Failure to comply may cost up to $5,000 per applicant, though a new law allows a five-day cure period after notice.