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restricted stock purchase Archives ⋆ Startup Lawyer

The 83(b) Election For Startup Founders

If founders stock is issued subject to a vesting period, each founder should make a Section 83(b) election with the IRS within 30 days of purchasing the restricted stock. If a founder fails to make a 83(b) election, each vesting milestone will be a taxable event for the founder. “Income”

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