selling a business and using qualified small business stock option

Hi. I am in the process of selling my small business (2 person LLC) and doing an asset purchase agreement to buy another business. We are wondering about how to incorporate the new company (C, S, LLC, etc) and use the QSBS option. We plan to sell the business again in about 3 years.

480

Expert Alumni

Apr 2, 2025 3:35:17 PM

S-Corp will get you the QSBS option but you're limited to 100 shareholders. LLC is a disregarded entity so you would have to choose how to be taxed anyway. C-Corp has the highest tax rate.

Without reviewing your actual business plan I'd go with an S-Corp.

@BluDotLuv

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selling a business and using qualified small business stock option