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With the QSBS exemption, you can protect up to $10 million of capital gains from federal and, in some cases, state taxes, as long as you joined your company early enough, hold your shares for five years, and check a few other boxes. With QSBS Stacking, we can help you do even better, multiplying the exemption by 2x, 3x, or more. Here's how it works.
The $10 million exemption
The QSBS rules exempt your first $10 million of capital gains from federal taxes (and state taxes if you're lucky enough to live in one of the 47 states that recognizes the exemption), as long as you received your shares before your company got too big, you held for five years, and your company meets a few other requirements. Instead of paying as much as 37% in state and federal taxes, you could pay nothing.
Another $10 million for your trust(s)
The QSBS exemption is available to every shareholder, and it's transferrable under certain circumstances. So, for example, if your shares are worth $20 million, you could give half of them to your parents, and you'd each get your own $10 million exemption. Or, even better, give shares to a Charitable Remainder Trust and set yourself as the beneficiary. Then, when the trust distributes its gains, it'll be like you're getting multiple QSBS exemptions yourself. There's no limit on how many trusts you can set up and, therefore, no limit on how many exemptions you can take.
Come out way ahead
So your trust gets a QSBS exemption, and maybe you set up a few to protect $30 million, $40 million, or more. What next? We'll work with you to time the distributions from your trust to make sure you come out ahead. In fact, you could end up with as much as 90% of your original gains. Compare that to 65% or less if you sold your shares outside of a trust and paid the taxes.
Valur works with founders, employees, and investors to craft a comprehensive tax plan that will help preserve more of your big exit, carry, and other gains.
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Sign up now, set up your tax-advantaged account, and start using it when you're ready. Our fees are straightforward: Pay nothing until you move assets into your trust. Then it starts at $1,500 + 0.25% per year.
✅ Completed documents to establish your tax-advantaged trust
✅ Fast transfer of assets for immediate tax benefits
✅ Seamless management (trust filings, tax documents)
✅ Ongoing review of account for new tax advantaged opportunities
✅ Tailored financial advising to maximize long-term growth
✅ Access to lending and other tools to maximize flexibility
I knew I should be thinking about tax planning as my company grew, and it was stressing me out. Valur made it quick and simple.