83(b) election

Also called: 83b, 83(b), 83 b, 83b election, section 83(b), eighty-three b

A notice sent to the US tax agency, the IRS, by a person who receives stock that vests over time. It asks to be taxed on the stock's value when it is granted instead of as it vests. The law sets a deadline of 30 days after the grant.

For example: A founder receives shares that vest over four years while the shares are worth very little. The founder's lawyer explains the 83(b) election and its 30-day deadline on the day the shares are issued.

Connects to 6

Vesting Concept
Cliff Concept
Equity Concept
Incorporation in Delaware Concept
Stripe Atlas Tool
Capital gains Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.