83(b) Election Help for Founders and Startup Equity

Section 83(b) elections allow recipients of restricted stock or other restricted property to include income near the transfer date rather than waiting until the property vests. For founders, employees, and service providers receiving equity at early-stage valuations, the decision can materially affect future tax reporting.

The filing window is strict. The election generally must be filed no later than 30 days after the property is transferred, so the records need to be reviewed quickly.

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 or review of the election statement and filing instructions
Proof-of-mailing and permanent record guidance
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.

Decision Support

83(b) work is deadline-driven and documentation-heavy

The filing window is short, and the tax record needs to match the legal equity documents. The engagement should identify the transfer date, grant documents, fair market value, vesting terms, and proof-of-filing file before a deadline becomes a permanent issue.

Who This Is For

Founders, employees, and service providers receiving restricted equity.
Startups issuing founder shares, restricted stock, or profits interests.
Recipients who need tax coordination before or soon after issuance.

Documents Usually Needed

Grant, purchase, operating, or award agreement and board approval.
Transfer date, vesting schedule, fair market value support, and ownership records.
Signed election, mailing proof, delivery proof, and prior communications.

What You Receive

83(b) deadline calculation and records checklist.
Tax impact discussion tied to the equity facts and valuation support.
Filing packet review and permanent record recommendations.

When Timing Matters

Before issuing restricted equity whenever possible.
Immediately after transfer because the 30-day filing window is strict.
Before financing, diligence, or exit events expose missing records.

Common Mistakes

Missing the 30-day window or assuming a late filing can be fixed.
Keeping no proof of mailing or delivery with the tax records.
Using dates or values that do not match the legal equity documents.

Engagement Fit

Best fit before the deadline, with complete legal and valuation records.
CPA work supports tax analysis; legal drafting remains counsel-owned.
Missed deadlines are documented honestly and evaluated for next steps.

What is an 83(b) election?

Short answer: An 83(b) election lets a founder, employee, or service provider elect to include restricted stock or certain equity compensation in income before vesting, generally within 30 days of the property transfer.

Common for restricted stock, startup equity, and profits interests.
The filing deadline is generally 30 days from the property transfer date.
Planning should consider value, vesting risk, QSBS, and exit scenarios.

Section 83(b) Election CPA Support