2055, Limestone RD STE 200-C, Wilmington DE 19808
+91-9097572443
info@txncapitalllc.com
Saurobh Barick
9:00 am - 6:00 pmQSBS Attestation Services by Transaction Capital LLC
Maximize Your Tax Savings and Ensure IRS Compliance with Certified QSBS Attestation
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.
Transaction Capital LLC's Role in QSBS Attestation Assistance
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.
What Our QSBS Attestation Includes
We provide a thorough, open 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: Active business activities must utilize at least 80% of your company’s resources.
- 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.
Why Choose Transaction Capital LLC for QSBS Attestation?
The qualified experts overseeing Transaction Capital LLC are equipped to manage your QSBS requirements:
- Experts in Certified Business Valuation: 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.
- Smooth Integration with Your 409A Assessment: 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.
- Flat-Fee, Clear Pricing: There are no hidden costs associated with our attestation services, starting at just $750 for startups.
- Ongoing Monitoring and Support: To help ensure ongoing eligibility, we provide proactive updates and annual reviews.
Who Needs QSBS Attestation?
Our services for QSBS attestation are perfect for:
- 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.
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:
- Examine your company’s eligibility for QSBS.
- Get a customized estimate for attestation services.
- Recognize the paperwork required for compliance.
Contact us via email at info@txncapitalllc.com or schedule your free call right now.
FAQs
- Is QSBS a tax credit?
No, rather than immediately lowering your tax liability, It is a capital gains exclusion that reduces taxable income.
- Can LLCs issue QSBS?
No, QSBS issuance is exclusively available to C-Corporations.
- Does the law require an attestation letter?
While it is not required, it is strongly recommended in case of an IRS audit or due diligence process.
- How do Transaction Capital LLC’s valuations support wealth transfer and succession planning?
Our certified attestation letter, your equity paperwork, and your cap table history will back your QSBS claim.
Protect Your Tax Benefits with Certified QSBS Attestation
Join the numerous entrepreneurs, investors, and startups who rely on Transaction Capital LLC for qualified QSBS attestation and professional business valuation services. To begin and uncover up to $10 million in tax savings, get in touch with us right now.
To schedule your consultation, get in touch with us right now!
You can also schedule a meeting with us through our appointment calendar — Click here to book a meeting