The One Big Beautiful Bill Act (OBBBA) gives tax-favored qualified small business stock (QSBS) its biggest upgrade in more than a decade.

The changes should help start-ups and other companies raise capital, and should enable business founders, investors, and employees who receive stock to reduce or even eliminate the federal tax when they sell their holdings.

They also make the C corporation structure more attractive than ever for businesses that qualify to issue QSBS.

What Is QSBS?

QSBS is stock issued anytime after August 10, 1993, by a domestic C corporation at least 80 percent of whose assets are used in the active conduct of a qualified business. (Many businesses don’t qualify—see below.)

For QSBS issued through July 4, 2025, the corporation’s gross assets (money and other property) must have been less than $50 million at all times prior to, and immediately after, the stock was issued ... Log in to view full article.