Understanding Capital Gains Tax in Startup Exits: A Founder’s Guide
When planning for a startup exit, one of the most significant financial considerations for founders is capital gains tax.
This tax, which applies to the profit realized from the sale of capital assets such as stock or equity, can have a profound impact on the overall profitability of an exit. For many founders, the potential tax liability can come as a surprise, affecting how much of the sale proceeds they actually take home. Understanding capital gains tax—and the strategies to manage it effectively—becomes critical for preserving the value of years of hard work and investment.
