QSBS Attestation Services by Transaction Capital LLC

Our specialty at Transaction Capital LLC is providing independent Attestation Letters that adhere to IRS regulations. These letters result from a comprehensive review of your company’s corporate structure, tax history, and stock issuances. Whether you are an investor pursuing the capital gains exemption or a startup preparing for an exit, our experienced staff collaborates with you.

We ensure a smooth attestation process for your QSBS needs with business valuation services that fully comply with IRS guidelines.

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Why Does QSBS Matter and What Is It?

Section 1202 of the Internal Revenue Code provides a substantial capital gains tax deduction for Qualified Small Business Stock (QSBS). With this exemption, eligible shareholders can sell qualifying shares and avoid paying capital gains taxes on up to $10 million or ten times the investment basis.

QSBS serves as a powerful tool for tax savings for early-stage investors, startup entrepreneurs, and employees of innovative companies.

However, demonstrating eligibility during an IRS examination can be challenging.

Founders and investors can now confidently navigate the process with the help of Transaction Capital LLC, which offers certified attestation services.

15+

Years of Experience

Decades of proven expertise in delivering accurate, audit-ready valuations.
1600

Successful Projects

A track record of precision and reliability across diverse industries.

What Our QSBS Attestation Includes

We provide a thorough, comprehensive method for QSBS certification that consists of the following essential elements:

1. Company Qualification Analysis

We determine if your business is eligible for Section 1202 QSBS advantages, which include:
  •    ● C-Corp Status: QSBS is only available to C-Corporations.
  •    ● Gross Assets Under $50 Million: At the time of stock issuance, your company’s total assets must not exceed $50 million.
  •    ● Active Business Activities: At least 80% of the company’s resources must be used for active business operations.
  •    ● No Disqualifying Redemptions: We determine if there have been any disqualifying stock redemptions.

2. Review of Stockholder Eligibility

We confirm that your stockholders meet the following requirements:
  •    ●Direct Issuance: The corporation must issue shares directly; they cannot be purchased on the secondary market.
  •    ●Period of Holding for Five Years Compliance: Shares must be held for a minimum of five years to be eligible for the exemption.
  •    ●Valid Basis Documentation: When applicable, we confirm the existence of supporting documentation, including Form 83(b).

3. Detailed QSBS Attestation Letter

We offer a professional attestation letter that can be used for various purposes, including:
  •    ●IRS Audit Support: In the event of an IRS audit, our letter helps defend your eligibility.
  •    ●Investor Relations: Clearly document your QSBS compliance for your investors.
  •    ●Trust and Estate Tax Planning: For estate planners, eligibility is crucial.
  •    ●M&A Due Diligence: Provide documentation for mergers and acquisitions to ensure seamless transactions.

Book a Free Consultation Today

Don’t risk losing valuable tax benefits. To ensure your QSBS compliance and maximize your tax savings, Transaction Capital LLC is here to help. Schedule a free consultation today to:

Your Free Consultation Includes:

  • Company eligibility assessment for QSBS
  • Customized estimate for attestation services
  • Documentation requirements review
  • Timeline and process explanation
Request Your Free Consultation Now

Why Choose Transaction Capital LLC for QSBS Attestation?

Certified Business Valuation Experts

Our staff provides professional, IRS-compliant business valuation services and is certified by ABV®, ASA®, CVA®, and MRICS®.

Audit-Ready & USPAP Compliant

In the event of an IRS examination, our attestation services are guaranteed to comply with strict criteria, such as USPAP, IVS, and SSVS.

Seamless 409A Integration

We can seamlessly integrate QSBS analysis with your 409A assessment if you have previously utilized our business valuation services, saving you both time and money.

Transparent, Flat-Fee Pricing

There are no hidden costs associated with our attestation services, starting at just $750 for startups.

Ongoing Monitoring & Support

To help ensure ongoing eligibility, we provide proactive updates and annual reviews.

Dedicated Expert Team

Work directly with qualified experts who understand the complexities of QSBS requirements.

Who Needs QSBS Attestation?

Our QSBS attestation services are designed for professionals and investors who need to maximize tax benefits and ensure regulatory compliance.
  • Startup Founders: When organizing a tax-efficient exit, maximize your tax savings.
  • Angel Investors and Venture Capitalists: Venture capitalists and angel investors can claim the capital gains exclusion on investments that qualify for QSBS.
  • Workers with Share Options: It is particularly beneficial for workers who have owned shares for more than five years.
  • Planners for estates and trustees: Determine the proper documentation of assets eligible for QSBS.
  • M&A Advisors: Assist sellers with their due diligence in mergers and acquisitions by providing the necessary compliance documents.

What Makes Our Services for QSBS Attestation Unique?

  • Cap Table and Equity History Review
    We provide a thorough analysis of your business’s capital structure.
  • Asset Threshold Evaluation
    We assess tax-basis asset levels alongside GAAP financials.
  • Screening for Redemptions and Repurchases
    We investigate any stock redemptions that may disqualify.
  • Industry Qualifications
    We ensure that your company meets the qualifying requirements in specific areas, such as financial services and law.
  • Acquisition and Holding Time Validation of the Method
    We confirm that the acquisition method and stockholder holding period comply with IRS requirements.

    Protect Your Tax Benefits with Certified QSBS Attestation

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    Common Questions About QSBS

    1. Is QSBS a tax credit?
    2. Can LLCs issue QSBS?
    3. Does the law require an attestation letter?
    4. How do Transaction Capital LLC’s valuations support wealth transfer and succession planning?