# 83(b) election

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

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](https://ecosystem.samcarlton.com/equity) that [vests](https://ecosystem.samcarlton.com/vesting) 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](https://ecosystem.samcarlton.com/grant).

**For example:** A [founder](https://ecosystem.samcarlton.com/founder) receives [shares](https://ecosystem.samcarlton.com/equity) that [vest](https://ecosystem.samcarlton.com/vesting) 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](https://ecosystem.samcarlton.com/vesting): Earning your shares bit by bit over time instead of all at once.
- [Cliff](https://ecosystem.samcarlton.com/cliff): The first stretch of a vesting schedule, during which nothing vests.
- [Equity](https://ecosystem.samcarlton.com/equity): Ownership in a company.
- [Incorporation in Delaware](https://ecosystem.samcarlton.com/delaware-incorporation): Forming a company as a corporation under the law of the state of Delaware.
- [Stripe Atlas](https://ecosystem.samcarlton.com/stripe-atlas): A service from Stripe that forms a US company for founders.
- [Capital gains](https://ecosystem.samcarlton.com/capital-gains): The profit from selling an asset, such as stock or property, for more than it cost.

> 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.

Map view: https://ecosystem.samcarlton.com/83b-election