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Huh? Surely you cannot do 83b election for the employees who joined after 30 days since the company formation? And if you don't, that makes situation a lot wor
by DenisM 10y ago
Huh? Surely you cannot do 83b election for the employees who joined after 30 days since the company formation?
And if you don't, that makes situation a lot worse for the employees, as they end up owning taxes at each vesting event.
- zamfi 10y ago83b doesn't have that restriction. You just have to file within 30 days of receiving the shares. Can be indefinitely long after company formation, since it's an election made by the employee, not the company.
- rdl 10y agoI'd recommend https://www.amazon.com/dp/B01M3UIVW3/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1 https://www.amazon.com/dp/B01M3UIVW3/ref=dp-kindle-redirect?... if you want to learn all the details -- it is a great reference. The concern I think you have is that FMV of the shares might have increased after company formation? That is what 409a is for, but you generally have a decent window between reassessments, especially early on. (6mo? Is what I've seen) 83(b) clock starts when the restricted grant is issued to employee. The price is set at that time.