Who Knew? LLCs Can Enhance Qualified Small Business Stock

Tax Notes

In this article, Orrick partner Steven C. Malvey and Peter J. Elias discuss how recent amendments to section 1202 could provide significantly enhanced tax benefits to founders of start-up ventures that were initially organized as limited liability companies. They also discuss the requirements for obtaining a 0 percent federal income tax rate on gains from sales of qualified small business stock.