Thinking About Starting A Business? Tax Law Changes Could Mean Millions More For You

If you’re a small business owner eyeing an exit in the next few years, the One Big Beautiful Bill Act could be your new friend.

President Donald Trump’s recently enacted law expands Qualified Small Business Stock (QSBS) benefits — meaning if your company is structured right, Uncle Sam might let you keep a whole lot more when you sell.

You Could Now Be In The Game

• The tax-free gain cap just jumped from $10 million to $15 million.
• The required holding period dropped from five years to three — with partial tax breaks along the way.
• And more companies now qualify, with the asset limit raised from $50 million to $75 million.

Here’s The Catch – Setting Up A Corporation

To qualify for QSBS, you must be a C corporation. That’s a hurdle for many small businesses who’ve long avoided C-corps because of “double taxation.” But under this new setup, the math is changing — and so are the incentives.

If you’re planning to sell within a few years, converting to a C Corp could save millions. That includes tech startups, manufacturers, wholesalers, retailers — basically anyone with an eye on a sale or succession.

A Shorter Holding Period = More Options

In the past, you had to hold QSBS stock for five years to exclude 100% of your gains. Now:

• 3 years = 50% exclusion
• 4 years = 75% exclusion
• 5 years = 100% exclusion

That flexibility gives business owners real planning power.

Doesn’t A C Corporation Get Doubly Taxed?

Yes, C corps face double taxation — first at the corporate level, then again when profits are distributed. But there are ways to minimize that. Of course, with the help of Exit Wealth and a qualified CPA.

Some owners choose to leave profits inside the business and live off personal savings instead. Not perfect, but for some, the numbers work.

Bottom Line

If you’re a small business owner thinking about selling in the next few years, this new law could be a once-in-a-generation opportunity to build a more tax-efficient exit strategy. It’s time to set up a meeting with Exit Stage Left Advisors and Exit Wealth Advisors.

When it comes to selling your business, timing and structure can be the difference between a good exit… and a great one.

– Justin Farmer, CEO | Exit Wealth Advisors

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