smallbiz01
Junior Member
What is the name of your state (only U.S. law)? TX
Hi y'all! New here. I've got a question for you. I currently have a small business LLC (poised for significant growth), and I'm considering converting to a C-Corp to take advantage of the 100% exemption of capital gains (on small business investments held at least 5 years) that expires at the end of this year.
The goal of this would be:
1) Make myself exempt from capital gains tax (I plan not to sell in <5 years)
2) Make my business attractive to any potential investors (I would like to raise cash by the end of the year)
My main question is: Are there any restrictions on me taking advantage of this as an owner? That is, when I convert my business from LLC to C-corp, can I treat the C-corp shares I get as an initial "investment" and thus be eligible for the capital gains exemption?
For reference, here is the code: United States Code: Title 26,1202. Partial exclusion for gain from certain small business stock | LII / Legal Information Institute
Hi y'all! New here. I've got a question for you. I currently have a small business LLC (poised for significant growth), and I'm considering converting to a C-Corp to take advantage of the 100% exemption of capital gains (on small business investments held at least 5 years) that expires at the end of this year.
The goal of this would be:
1) Make myself exempt from capital gains tax (I plan not to sell in <5 years)
2) Make my business attractive to any potential investors (I would like to raise cash by the end of the year)
My main question is: Are there any restrictions on me taking advantage of this as an owner? That is, when I convert my business from LLC to C-corp, can I treat the C-corp shares I get as an initial "investment" and thus be eligible for the capital gains exemption?
For reference, here is the code: United States Code: Title 26,1202. Partial exclusion for gain from certain small business stock | LII / Legal Information Institute