Qualified Small Business Stock (QSBS)

The Qualified Small Business Stock (QSBS) exclusion under IRC Section 1202 offers founders and investors the opportunity to exclude up to 100% of capital gains on the sale of qualified stock, making it one of the most powerful tax planning tools available to early-stage companies.

At Teknos Associates, we help clients unlock the value of QSBS by providing independent, defensible valuations that support basis step-ups, conversions from LLC to C-Corp, and other transactions where QSBS eligibility or tracking is essential. Whether you’re a founder preparing for a future exit, an investor evaluating tax implications, or a legal advisor supporting entity formation or restructuring, our valuation professionals can help you navigate the complexities of QSBS with confidence.

Need support with a QSBS-related valuation? Our team has extensive experience preparing valuations for Section 1202 and 1045 planning, including:

  • Valuations for entity conversions (e.g., LLC to C-Corp)
  • Basis step-up determinations for QSBS tracking
  • Fair market value appraisals for founders and investors
  • Valuation guidance for estate planning and gifting strategies involving QSBS

Connect with us to discuss how we can support your tax planning or compliance needs.

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