SHAY CPA P.C.’s Post

I've seen the power of QSBS firsthand and its ability to change lives for founders and their families. When I think about the term 'Generational Wealth' - QSBS comes to mind very often. Imagine for a moment that you can sell shares in your business and not pay taxes on up to $10,000,000 in capital gains. Well, that's a reality when it comes to QSBS. Below are a few tips for founders as they set up their entities to take advantage of this huge tax benefit that could help them, their investors, and their employees. We've seen founders make critical mistakes early on in their journeys that disqualify them and their stakeholders from taking advantage of this massive tax benefit. ✅ The company must be set up as a Domestic C-Corporation in the United States, - it must remain as a C-Corp throughout its lifetime. ✅ Gross assets must not exceed $50M immediately before or after the stock issuance. ✅ The business cannot be engaged in certain services such as health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any business where the principal asset is the reputation or skill of one or more of its employees. Additionally, the business cannot be in the business of farming, mining, or operating a hotel, motel, or restaurant. ✅ Holding Period: Investors must hold the QSBS for at least five years to qualify for the tax benefits. ✅ Original Issuance: The stock must have been acquired at its original issuance (directly or through an underwriter) in exchange for money, property (not including stock), or as compensation for services provided to the corporation. ✅ Active Business Requirement: At least 80% (by value) of the corporation's assets must be used in the active conduct of one or more qualified trades or businesses. Passive-income businesses, financial institutions like banks, insurance companies, and investment companies typically do not qualify. We've got a handy guide below and would be happy to be a resource for founders looking to take advantage of this benefit. #QSBS #capitalgainstax #83b #RestrictedStock #CFO

A delayed filing of business registration allows businesses to submit formation documents ahead of time and choose a future start date, often January 1. This strategy helps avoid filing two tax returns in the same year and can reduce state fees. It also allows businesses to avoid peak-season processing delays. However, it may not be ideal for those needing to operate immediately. Companies considering this option should plan carefully to ensure it aligns with their business goals and consult with experts. #Business #Registration #Taxes #BennettThrasher https://lnkd.in/ei6SdJUU

Crafted for small businesses and start-ups, along with the tax preparers of these businesses, Dash optimizes the ability to claim R&D tax credits without the need to engage with a specialist to produce a comprehensive study. Are you ready to Dash? >> https://hubs.ly/Q02v6BNW0

Hey!! It's Tax Tip Tuesday!! If you started a business you can deduct up to 5k in start-up costs your first year in business. #taxtips #startupcosts #taxtiptuesday #businessdeductions

March 15th is just around the corner, S-Corp owners! ⏳ Don't forget to mark your calendars for the upcoming deadline to file Form 1120S. Let's stay on top of our tax game and ensure a smooth filing process. 📅 #TaxDeadline #Form1120S #S_Corp #StayCompliant #ShayCPA #cpafirm #techaccountants #startupaccountants #techstartup #techcompany #taxes #taxseason

BUSINESS OWNERS | The ATO is cracking down on business owners who take money or use company resources for themselves. Mistakes are being made and the Australian Taxation Office (ATO) states that they have had enough. Read more to understand how this may affect you and your business: https://lnkd.in/gykPMCu9 #businessowners #queenslandbusiness #companies #tax

Tax season on your mind? Worried about whether you have access to the right tools to reduce your stress during the season? We got you! Whether this is your first tax season as a firm owner or if you are a seasoned professional, the right technology lies at the foundation. Here is the tech checklist that might become the respite you are looking for: https://zurl.co/ezpO Find your path to a successful tax season today! #finsmartaccounting #accountingandaccountants #tax #tech #outsourcing #checklist

Want to Unlock Maximum Tax Benefits for Your U.S Start-Up? Dive into this months Featured Article: The Golden Tax Strategy for Start-Ups in the U.S. Read More: 👉https://hubs.li/Q02kgM6X0 #TaxStrategy #StartUpSuccess #BusinessGrowth #USMarket #TaxConsiderations #SolvingTheGlobalTaxPuzzle #InternationalTax #Design #IRSUpdates #Tax #Business #LinkedIn #Audit #TaxLaw #TaxCompliance #IRSInsights #LinkedIn

In this video we’ll be looking at Entrepreneurial relief, a tax relief that can save a business owner €230,000 and how it can easily be taken away from the unprepared ! #taxconsultant #entrepreneurrelief #cgtrelief #tax