Re:Why your startup should be a Delaware C-Corp, not an LLC
by kayef on Thursday March 16, 2017 @01:24PM
(#13886897)
Start a company today, and if you're lucky, you'll sell it no sooner than 5 years. In that case, you'll most likely qualify for QSBS, which means you'll pay an effective rate of 0%. Only available for C-Corps. You're welcome.
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Re:Why your startup should be a Delaware C-Corp, not an LLC
by GoRudy on Friday March 17, 2017 @02:24PM
(#13896558)
To expand on this as it's an important point and QSBS is the reason why VCs love C Corps... the deduction is the a HUGE benefit but also thanks to our tax system the deduction % is not static...
The % deduction you can take is entirely dependent on the year and sometimes month of when your stock is issued. For example we had C Corp stock issued in February 2010 so our FEDERAL deduction was 75% NOT 100% which it would have been if it was issued in November of the same year (Blah), also California no longer has the QSBS deduction so you still pay the 8%+ here.