For consumer packaged goods (“CPG”) founders, understanding the complexities of business structures and tax consequences is essential to maximize growth and attract investors. The Qualified Small Business Stock (“QSBS”) exclusion provides considerable tax advantages when structuring a corporate entity. For example, founders and early investors may be eligible to exclude up to 100% of capital gains on qualifying startup stock from federal income tax—up to $15 million or ten times their investment—which can result in substantial tax savings.
