Understanding Equity Compensation in Startups
By Joe Wallin, Seattle Startup Lawyer Equity compensation is one of the defining features of the startup world.
Page 11
Only C-Corps Can Issue QSBS — and That’s a $15 Million Reason to Care
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.
Can Insurance Agencies Qualify for Section 1202 QSBS? Understanding Recent IRS Guidance
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...
Qualified Small Business Stock: What the 2025 One Big Beautiful Bill Means for Start‑Ups and Investors
Disclaimer: This post is for informational purposes only and does not constitute legal or tax advice.
Qualified Small Business Stock (QSBS): What Founders, Investors, Contractors, and Employees Need to Know
What Is Qualified Small Business Stock (QSBS)? Qualified Small Business Stock, or QSBS, refers to shares issued by a U.
Electronic Filing of Section 83(b) Elections – A Modern Convenience with Important Deadlines
The Internal Revenue Service (IRS) has quietly modernized the once antiquated process for making a Section 83(b) election.
The Big Beautiful Bill: A New Era for QSBS and Startup Investment
On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act (often called the "Big Beautiful Bill").
Be Careful Who You Issue Stock Options To Under Rule 701
Intro to Rule 701 Any time a company grants stock options or compensatory equity awards of any kind, the company must comply with the registration requirements of federal and applicable state...
Do Not Try to Self-Administer Your Stock Option Plan
When you set up your company, you hopefully set up a stock option plan (also known as an equity inventive plan) at the same time so that you have a plan that is properly adopted and ready to be used...
The Rule 701 Math: How to do it
If you are a non-public company granting stock options or other compensatory equity awards, you need to be familiar with Rule 701 Math and in particular its mathematical limitations.