Tax Exempt Municipal Bonds

Municipal bonds are issued by state or local governments to fund public projects such as infrastructure, schools, or utilities. The interest income earned by investors is typically exempt from federal income tax and may also be exempt from state taxes if the investor resides in the issuing state. These bonds are attractive to investors in higher tax brackets. While startups do not issue these bonds, founders and investors may include them in their personal investment portfolios for tax-efficient income.