Raise Millions by Hustle Fund VC Page 20 exempt from paying federal taxes when your company gets acquired or IPOs. That’s a huge deal. If Eric had converted the business to a Delaware C-Corp, he would have faced a much lower federal tax bill when his business was acquired thanks to QSBS. There are a lot of potential federal tax exemptions only available for Delaware C-Corp businesses. This benefit also applies to investors. They’ll be exempt from paying taxes in many scenarios thanks to QSBS. So everyone gets to keep more money upon an exit. We’re not lawyers. Do your research on QSBS and read all the nuances on Delaware’s official page. Benefit #3: It’s favorable to investors who are buying shares Imagine Eric invests in a cycling software business and it’s doing really well. Like $20M in revenue every year. In this hypothetical situation, Eric wouldn’t need to personally pay any taxes along the way even though he’s a part owner of the business. Eric would only pay taxes on the gains he makes when this startup gets acquired or IPOs. Just one of many unusual and wonderful treatments of taxes that you can find with Delaware C-Corp structures. hustlefund.vc / @hustlefundvc