202 Small Bus Stock Gain Exclusion for LLC's electing C corp

Section 1202 refers to stock but would think that the members of an LLC which elected C corp status from date of formation should get the same 1202 treatment as shareholders of an entity that was always a C corp.

Whatya think?

Agree...assuming the LLC members meet all the other requirements of ownership under 1202

PLR-102539-16

https://www.irs.gov/pub/irs-wd/201636003.pdf

NS, awesome. I was all set to quote a one line from PPC saying that formal stock was required.

All set to give the client the good news when I read the entire code section

This C Corp electing LLC was created after the 100% date, and the equity is original issue. But the darn requirement that it be a "“Qualified Trade or Business” looks like a deal killer. The company does contract R&D which sure smells like a verboten engineering/consulting service biz. 5 employees, 3 of whom are shareholders.

Len