Optimizing Early-Stage Equity Taxation
Section 83(b) elections allow recipients of restricted stock to recognize ordinary income at the time of grant rather than when the stock vests. For early-stage company founders and employees receiving equity at low valuations, this election can result in dramatic tax savings.
However, the 30-day filing deadline is absolute and cannot be extended. Missing this deadline means losing the opportunity forever.
When to Consider an 83(b) Election
- Founder shares received at incorporation
- Restricted stock grants at early-stage valuations
- Stock purchased at a discount subject to vesting
- Partnership and LLC profits interests (with capital interest component)
What We Provide
- Analysis of whether an 83(b) election is appropriate
- Valuation support and fair market value documentation
- Preparation of election statement and filing instructions
- Confirmation of IRS receipt
- Tax return reporting and ongoing tracking
Risks to Consider
While 83(b) elections can provide significant benefits, they're not always the right choice. We help you understand the risks, including the potential for forfeiture and the acceleration of tax liability.