In this Private Equity Wire article, Goodwin partners John LeClaire, Chris Wilson, and George Davis write that Section 1202 of the Internal Revenue Code, initially adopted in 1993, enables US investors in certain US companies to realize substantial federal income tax savings if they hold equity constituting “Qualified Small Business Stock” (QSBS) under Section 1202 for at least five years [and certain other conditions are met]. Many states follow the federal approach. QSBS has long been a part of the analytical framework in early-stage company formation and investing. Knowledgeable early-stage entrepreneurs and investors understand the tradeoffs associated with alternative structures and regularly consider whether to organize US businesses as C corporations, thereby creating the possibility of issuing stock that may later qualify for QSBS treatment from the start, or in tax pass through form. Read the full article on PE Wire.