When founders issue stock that qualifies as QSBS and later sell it after 5 years, up to 100% of the capital gains may be exempt from taxes.

Key requirements:

• The company must be a C-corporation.

• Gross assets must not exceed $50 million at the time the stock is issued.

• At least 80% of assets must be used in an active trade or business.

Founders can deduct up to $5,000 in startup costs (e.g., marketing, research, business plan development) in the first year, with the remaining amortized over 15 years.

Founders developing innovative products or services can claim the Research & Development Tax Credit, which offsets payroll taxes or income tax liabilities.

Eligible expenses include software development, prototyping, and testing.

Founders operating out of their home can deduct a portion of home-related expenses (e.g., rent, utilities, internet) based on the percentage of space used for business purposes.

Self-employed founders can deduct 100% of health insurance premiums for themselves and their dependents, directly reducing taxable income.

If founders locate their business in a Qualified Opportunity Zone (QOZ), they may be eligible for capital gains deferrals and potentially tax-free growth after 10 years.

If the business incurs a loss, it can be carried forward to offset future taxable income, reducing future tax liabilities.

Founders paying self-employment taxes can deduct 50% of these taxes when calculating their adjusted gross income (AGI).

Founders can immediately deduct the cost of certain equipment or assets purchased for the business (e.g., computers, machinery) instead of depreciating them over time.