Startup Intellectual Property & Tax Strategy

Build a Powerful Patent Estate — and Keep More of the Upside

At Kennedy Law Practice, P.C., we help startup companies do two things exceptionally well:

Rapidly build high-quality patent portfolios with real claim coverage
Structure the company to maximize tax advantages, including IRC §1202 Qualified Small Business Stock (QSBS)

This is not traditional law firm advice. This is strategic company building through intellectual property.

Why Startups Need More Than Just a Patent Application

Most startups file one or two patents and hope for the best.

That is not a strategy.

A successful startup builds a cohesive patent estate that:

Creates barriers to entry

Supports valuation during fundraising

Enables licensing and enforcement leverage

Positions the company for acquisition or public offering

We focus on issued claims, not just filings.

Rapid Patent Estate Generation (RPEG™)

We implement a structured approach to quickly develop a defensible portfolio:

Core Technology Mapping

Identify all patentable components of your product or platform

Build an intellectual property roadmap (what to file, when, and why)

Align filings with business milestones and funding rounds

Strategic Filing Execution

Provisional and non-provisional filings with layered claim strategies

Continuation practice to expand coverage over time

Focus on broad + defensible claims that withstand scrutiny

Claim-Centric Prosecution

Direct engagement with USPTO examiners

Fast-tracked prosecution where appropriate

Build toward issued claims early in the company lifecycle

Portfolio Expansion

Continuations, divisionals, and foreign filings

Defensive and offensive claim positioning

Ongoing portfolio development tied to product evolution

Patent Estate = Enterprise Value

A well-constructed patent estate can:

Increase pre-money valuation

Support premium acquisition multiples

Provide licensing revenue streams

Serve as a deterrent to competitors

We build portfolios that investors recognize as real assets—not placeholders.

Startup Structuring for Tax Advantage (QSBS – IRC §1202)

A powerful patent estate is only half the equation.

We also help structure your company to take advantage of one of the most significant tax benefits available to startup founders and investors:

Qualified Small Business Stock (QSBS)

Under Internal Revenue Code §1202, eligible shareholders may exclude up to:

100% of capital gains

On up to $10 million (or more) per shareholder

Key Structuring Considerations

We guide startups through:

C-Corporation formation (required for QSBS eligibility)

Asset structuring to meet the $50 million gross asset test

Ensuring the company qualifies as an active business

Timing of stock issuance and founder equity allocation

Coordination with IP ownership and licensing structures

Integrated IP + Tax Strategy

Most firms treat patents and tax structuring separately. We don’t. We integrate:

Patent estate development

Corporate structure

Equity planning

Exit strategy positioning

From day one. This ensures:

Your IP is owned in the right entity

Your stock qualifies for QSBS treatment

Your future exit is optimized for after-tax return

Why Kennedy Law Practice

Thomas J. Kennedy III brings a unique perspective:

Registered U.S. Patent Attorney

Named inventor on 250+ U.S. patents

Extensive experience in patent prosecution and litigation

Deep understanding of how innovation translates into real-world value

A properly structured company with a strong patent estate can:

Raise capital more effectively

Deter competition early

Deliver significantly higher after-tax outcomes at exit

Designed for Founders, Investors, and Emerging Companies

We work with:

Early-stage startups

Venture-backed companies

Founder-led technology businesses

Spinouts and innovation-driven companies

Start Building Your Patent Estate Today

The earlier you start, the greater the advantage.

Contact Kennedy Law Practice, P.C. to schedule a consultation.