We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Qualified Small Business Stock (QSBS)

What is Qualified Small Business Stock (QSBS)?

Qualified small business stock (QSBS), also called Section 1202 stock, gives founders and early startup investors an opportunity to exclude part or all of their profit from capital gains taxes when they sell their stock. 

The company issuing the QSBS and buyer need to meet specific requirements for the exemptions to apply. For example, the company must be a domestic C corporation, can’t have over $50 million in assets before or immediately after issuing the stock, and can’t be part of specific types of trade or business (such as health, law, or farming). The buyer has to be an individual, trust, or pass-through entity and has to hold the stock for at least five years before selling. 

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.