Practical legal guidance on QSBS (Section 1202), equity compensation, startup formation, financing, and Washington State tax issues for founders, investors, and startup employees.
Washington's 30-day safe harbor makes you a nonresident — it doesn't change your domicile. Long-term stock gains are allocated by domicile at the time of sale, so the safe harbor alone won't protect your exit.
Part-year residents face a two-part calculation under ESSB 6346 — and the $1M standard deduction prorates by income, not days. How §§406 and §315 actually work, with examples. Note: This article is informational only and is not legal or tax advice.
An announcement doesn't establish domicile — conduct does. What the Derek Jeter and Tom Golisano tax fights teach Washington residents planning an exit before 2028.
The ESSB 6346 referendum failed to qualify for the ballot. Here's what that means for Washington founders, investors, and high earners — and why you need to start planning now.
Section 1202 uses tax basis for the company's qualification cap and FMV for the shareholder's exclusion cap. Confusing the two costs founders money. The distinction, cleanly.
Angels investing on SAFEs are the most QSBS-exposed investors on the cap table and the least protected. A one-page side letter with an annual certification fixes it.
The NVCA venture forms address Section 1202 at closing and then go silent. Several core QSBS requirements are continuous tests, not issuance tests. The forms should require an annual certification.
For Washington founders, §1202 is the single most valuable tax provision in the federal code. Here's how to qualify, document, and defend the exclusion across both pre- and post-OBBA regimes.
