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Tag: Cap table
QSBS & California: 0% State Exclusion? Myth-Busting the Rules
Introduction You may have heard that Qualified Small Business Stock (QSBS) offers a 0% tax rate, but in California, this is where myths and reality diverge sharply. In this 2025 guide, we’ll unpack whether California honors IRC §1202 exclusions, how state sourcing affects your gain, and what founders need to know about myth-busting QSBS treatment […]
Stock-Option Income: When Do CA Non-Residents Owe?
Introduction Non-residents often believe they’re off the hook for California taxes but stock options granted while living or working in California may still be sourced to the state even years later. In 2025, with increasing audits on equity-based income, this blog explains when non-residents are liable for California taxes on exercised or vested stock options. […]
California 409A Valuation Discounts: State Tax Footnotes Investors Read
Introduction Your startup’s 409A valuation isn’t just about issuing stock options it’s a due diligence magnet for investors and auditors alike. But here’s the twist for 2025: California investors are combing through state tax footnotes, especially for valuation discounts. In this guide, we cover how 409A valuation discounts affect California state tax reporting and how […]