This blog post highlights important takeaways for planning to take advantage of the exclusion from federal taxable income of gain realized from the sale or of qualified small business .
Traditionally, the management and investors of venture-backed companies would begin considering an exit for the company—an IPO or acquisition—as it entered the growth phase. Today, however, more and more companies (particularly in the tech sector) are opting to stay private longer. Without from these traditional sources, companies are increasingly seeking alternative forms of for the founders, early investors and employees.
