Startups For the Rest of Us Episode 819 | QSBS, Exit Multiples, How to Learn Marketing, and More Listener Questions (Rob Solo)
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Feb 10, 2026 Discussion of QSBS and how business structure can affect tax savings on a sale. When a C Corp might beat an S Corp or LLC for long-term gains. Why SaaS buyers lean on ARR multiples instead of EBITDA. Covers GMV-based pricing and where developers can learn practical marketing skills.
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Consider C-Corp For QSBS If You Plan To Exit
- If you expect to hold equity 3+ years or target a multi-million dollar exit, consider starting as a C Corporation for QSBS benefits.
- Expect short-term double taxation but potentially large federal tax exclusion on qualified sales after holding periods.
C-Corp Signals And Tradeoffs
- A C-Corp signals buyers and simplifies future funding or exit logistics, which is why many investors prefer it.
- There is no universal answer; lifestyle businesses or likely asset-sale situations may favor S-Corp/LLC structures.
ARR Multiples Beat EBITDA For SaaS Valuation
- For SaaS exits, evaluate buyers by ARR multiples because growth and retention drive valuations more than current EBITDA.
- Prioritize net negative churn and growth even over short-term profitability if seeking a high ARR multiple.
