# Should I exercise my startup stock options now or wait? How does QSBS qualification affect this decision?

Stock option exercise timing depends on multiple factors:

- **QSBS qualification**: Exercising ISOs early can start the 5-year QSBS holding period for potential $10M+ tax-free gains
- **AMT considerations**: ISO exercises may trigger Alternative Minimum Tax
- **Liquidity needs**: Exercising requires cash for taxes and exercise price
- **Company prospects**: Higher risk companies may warrant earlier exercise

For QSBS qualification, you need:

- Stock acquired at original issuance
- $50M+ asset test at issuance
- 3-5-year holding period
- Active business requirements

Range's analysis considers all these factors plus your complete financial picture to recommend optimal timing.

_Source:_ [_Range Blog - ISOs vs NSOs_](/content/blog/iso-vs-nso-whats-the-difference/index.html) _,_ [_What is the QSBS tax exemption and do any of my investments qualify?_](/content/blog/what-is-the-qsbs-tax-exemption-and-do-any-of-my-investments-qualify/index.html)