Up to 100%
Federal capital gains exclusion on qualified stock
$10M-$15M
Minimum per-taxpayer exclusion cap
$1B+
Total tax savings identified for our clients
IRC SECTION 1202
THE TAX-FREE EXIT
Most founders focus on top-line growth but forget that their biggest expense at exit will be the IRS. Section 1202 (Qualified Small Business Stock) allows eligible shareholders to exclude up to 100% of their gains.
Arvo provides a comprehensive, expert-led roadmap to ensure your business qualifies and stays qualified until the day you sign the deal.
Audit-proof your exit. Arvo generates the documentation and tax opinions required to survive an IRS challenge.- Master the five-year clock. We track your holding period and "substantially all" requirements in real-time, ensuring you never accidentally disqualify your stock.
- Strategic conversion guidance. Currently an S-Corp or Partnership? We've built preferred partnerships to manage the valuation and documentation needed to convert to a C-Corp without losing the value you've already built.
- Beyond exclusion caps. Our advisors help you navigate per-issuer limitations and "stacking" strategies to maximize exclusions.
- State-level strategy: Don't get blindsided by state taxes. We provide residency planning to help you navigate "non-conforming" states like California.
EXPLORE EVERYTHING ARVO OFFERS
Confused by the "Active Business" test?
While the IRS excludes certain service fields, many businesses qualify if they deliver value through scalable platforms. Our experts apply the IRS criteria to your specific revenue model to uncover your eligibility.
Missed the C-Corp boat?
It’s not too late. With the corporate tax rate reduced to 21%, the "double tax" of a C-Corp is often outweighed by the massive benefit of a tax-free exit. We help you analyze the math and execute the conversion when the timing is right.
Tech
Software and SaaS are the textbook QSBS case. Set up your C-corp right from the start, and you and your early team can walk away from the sale with up to 100% of the gain free of federal tax.
Manufacturing
Build a physical product and you're squarely in qualified-business territory. As a C-corp, the gain when you sell your manufacturing company can be up to 100% federal-tax-free.
Energy
Energy companies that build real technology are exactly the profile §1202 rewards. Structure as a C-corp early and up to 100% of your founders' gain can come out free of federal tax.
Life Science
Biotech, diagnostics, and medical devices are product companies, not clinical practices—and under §1202 that distinction is everything. Get the structure right and you can take up to 100% of your exit gain federal-tax-free.
Construction
Construction firms can qualify, but structure decides it. Build the company as a C-corp with real operating assets—not one owner's name—and your eventual sale can be largely shielded from federal tax.
Retail
Consumer and retail brands built as C-corps are prime QSBS candidates. Grow the business, sell it down the road, and exclude up to 100% of the gain from federal tax.
How can we help you?
Join over 5,000 businesses that have trusted their finances with Arvo
Jason Barton
President, Barton Staffing Solutions
“The team at Arvo go above and beyond for our team at Barton Staffing to provide us with weekly reporting along with real-time data to make sure we are capitalizing on each and every opportunity. Arvo Tech is more than a vendor; they are a partner.”
Will Zell
Co-Founder and CEO, AssetWatch
“Take the time to sit down and talk with the Arvo team. It’s worth your time. Within 5 minutes you will say yes.”
Jenny Gardner
Chief of Staff, ATG Limited
“The team was super responsive to our request, timeline, and various questions. We made the decision to pursue the credit pretty late in the game to meet our tax deadline and they really supported us on the effort. All wins in our book.”
Sham Mustafa
CEO, Correlation One
“Our experience with the Arvo team was outstanding! We were not familiar with the R&D credit and felt the process would be cumbersome. The Arvo team was really knowledgeable, very responsive, and solutions-oriented.”
April Seggebruch
EVP, Movista
“To be honest, I figured claiming the R&D tax credit would be an awful process, kind of like going to the dentist. With Arvo understanding the program was streamlined, easy, and presented in very simple terms. The team did a great job of removing all the clutter; getting down to what mattered most, and walking us through the process.”
Richard Cumberland
Controller, Zupt, LLC
“We had done R&D studies with another company that just took way too much employee and management time. And they were very expensive. Then I found Arvo. And it was an entirely different story. Clear directions. Easy software. Helpful people. Reasonable fees.”
