If you are paid in stock it's still taxable at the value assigned.In your example a $3K salary and $2K of stock would be taxed at $5K. You are probably better o

If you are paid in stock it's still taxable at the value assigned.In your example a $3K salary and $2K of stock would be taxed at $5K. You are probably better off paying for restricted stock at a very low price that reflects the current state of the startup. In other words negotiate for your % of ownership, pay for it now at "today's price" for the company (and execute the 83(b)), and have your stock subject to buyback restrictions that are on a vesting schedule (such that your true ownership of that % may take three to five years). See http://www.startupcompanylawyer.com/2008/02/15/what-is-an-83b-election/ http://www.startupcompanylawyer.com/2008/02/15/what-is-an-83...