Can you roll QSBS proceeds into your own new startup?
Often, yes. The new company has to be a qualifying C corporation that issues you stock for cash at original issuance within your 60-day window, and it must meet the active business requirement for at least the first six months you hold the stock.
How founders usually sequence it
- Incorporate the new company as a Delaware or other domestic C corporation early, before the sale closes if possible.
- Buy newly issued shares for cash within 60 days of closing.
- Put the cash to work in the business.
Watch the cash pile
A new company holding a large rollover investment as idle cash can raise active business questions. Working capital rules help, but they have limits. Plan the use of funds with counsel.
Paperwork
Document the purchase price, the date, and the company’s QSBS status at issuance. You’ll need them for the election and for any later exclusion.
Selling QSBS soon? Share your timing and we’ll line up qualifying rounds that close inside your window.
General information, not tax advice. Last reviewed November 2026.