Once known as “Furniture City” and now “Beer City USA,” Grand Rapids has long been a home to innovation and entrepreneurs. Want to create a supermarket and see it spread to more than 190 stores in five states, or turn cleaning products into a global enterprise? Grand Rapids might be just the place for your family business startup to become the next big thing, or for your existing family business to invest in a startup and share in its success as it grows.
Unfortunately, success usually leads to taxes. There are tax-saving laws to encourage startup investment, but the timing is important: If you acquire qualified small business stock, or QSBS, before the end of the year, then hold the stock for at least five years, you may be able to exclude 100 percent of the gain realized on the future sale of that stock. The same stock acquired in 2014 or later is eligible for only 50 percent gain exclusion.