Entrepreneurs, here’s some exciting news you can’t afford to miss. The recently passed “Big, Beautiful Bill” expanded one of the most powerful tax breaks available to small business owners and investors: Qualified Small Business Stock (QSBS).

What Is QSBS?

QSBS applies when you hold stock in a C-corporation that meets specific requirements. If your company qualifies and you’ve held your shares for the right amount of time, the government allows you to exclude most—or even all—of your capital gains when you sell.

Why It’s a Game-Changer

• After 5 years: You can pay zero federal capital gains tax on up to $15 million in profits (or 10x your investment, whichever is greater).

• After 4 years: 75% of your gains can be tax-free.

• After 3 years: 50% of your gains can be tax-free.

This is not a loophole — it’s a deliberate incentive to invest in and grow small businesses.

Who Qualifies?

• Your company must be a C-corp (not an LLC or S-corp).

• Its assets must be $75 million or less at the time the stock is issued.

• It must be engaged in an active business (most service firms, real estate, and finance companies don’t qualify).

• You must have received the shares at original issue (not purchased second-hand).

What This Means for You

If you structure your business the right way and plan ahead, you could build and sell your company, keep millions in gains, and pay nothing in federal capital gains tax. That’s a once-in-a-generation incentive designed to reward entrepreneurs like you.