Qualified Small Business Stock (QSBS) is a tax incentive that I have found few are aware of and even less understand. Once you start to unpack it, you realize its importance if you spend time investing in early stage companies as it can lead to a 100% capital gains exemption on federal and state income tax (depending on what state you reside in). I am a huge fan of QSBS as it is an incentive that is available to all of the key stakeholders that sit around the table of early stage companies (Founders, Angel Investors, Seed Venture Funds, Series A & B venture funds, Employees, Limited Partners, etc.)