Practical legal guidance on QSBS (Section 1202), equity compensation, startup formation, financing, and Washington State tax issues for founders, investors, and startup employees.
Washington's new income tax has no prior-year estimated-tax safe harbor for first-time filers. A founder or early employee in an exit year can pay the entire tax with a timely filed return and still face a penalty.
A K-1 is not a check. Starting with 2028 income, Washington’s 9.9% tax can reach profits owners never receive in cash. Here is the two-owner example.
My five Washington Supreme Court endorsements, and the constitutional reasoning, votes, and judicial experience behind them.
Opinion • October 3, 2026 I support Initiative 645. The way a startup employee’s restricted stock units can turn years of work into one year of taxable wages is one reason why. Imagine an employee…
S corporation stock is not QSBS. But an S corporation may hold qualifying stock in a new C-corporation subsidiary. Here is how the strategy works—and where it can fail.
A serious M&A term sheet is a tax-planning alarm clock—not a universal tax cutoff. Identify QSBS, gifts, domicile, structure, and §280G issues before the deal gets too far along.
Washington estate tax explained: 2026 exemption changes, 10%–20% rates after July 1, filing deadlines, married couples, and planning for founders.
If you own an S corporation or an LLC taxed as a partnership, your cash distributions don’t determine your tax bill. Retaining profits in the business can leave you with a personal tax obligation—and less cash to pay it.
Moving before a startup exit can change the state tax result. Review QSBS eligibility, California residency, equity compensation, and Washington taxes before a sale.
Washington's estimate rose from 21,000 households to 25,000. The revision highlights a planning risk: the $1 million deduction may not keep pace with inflation. Sections 314 and 316 explain why—and leave an indexing question unresolved.
