The 83(b) election is a provision under the Internal Revenue Code (IRC) that gives an employee, or startup founder, the option to pay taxes on the total fair market value of restricted st… See more

The 83(b) election applies to equity that is subject to vesting, and it alerts the Internal Revenue Service(IRS) to tax the elector for the ownership at the time of granting, rather than at the … See more

For example, a co-founder of a company is granted 1 million shares subject to vesting and valued at $0.001 at the time the shares are granted. At this time, the shares are worth t… See more

The 83(b) election gives the co-founder the option to pay taxes on the equity upfront before the vesting period starts. This tax strategy allows the co-founder to only pay taxes on th… See more

An 83(b) election allows someone to pay taxes on their stock awards at the time that they are granted, rather than at the time of vesting. This tax law is of particular benefit to startup e… See more