The QSBS Tax Exemption: A Valuable Benefit for Startup Founders and Builders

Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo... by modeless on Thursday August 26, 2021 @09:47PM (#28323415)

There are a lot of exclusions based on the type of business. No farming, banking, finance, insurance, hotels, restaurants, "or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees" such as doctors, accountants, consultants, etc.

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim...

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Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo... by stevenicr on Thursday August 26, 2021 @11:58PM (#28324146)

I'm considering a opening / franchising a new type of gaming-cafe - I wonder if that would be deemed a 'restaurant'.

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Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo... by jiveturkey on Friday August 27, 2021 @03:39PM (#28332138)

Does it matter for this purpose? I have a hard time imagining that your business raises capital and has an exit, where QSBS will come into play.

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Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo... by LurkingPenguin on Friday August 27, 2021 @03:04AM (#28325115)

You might want to consider separating the businesses, with the core IP you franchise held in a parent company. Any company-operated restaurants would be separate entities.

Not a lawyer/accountant though, so as always, you should seek professional counsel.

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Re:The QSBS Tax Exemption: A Valuable Benefit for Startup Fo... by anonymouse008 on Friday August 27, 2021 @02:51AM (#28325040)

Franchising is mostly IP and distribution depending ??

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