83(b) Election
A US tax election that lets founders and employees with vesting stock pay tax on its value now, when it is low, rather than as it vests later at higher values. Must be filed within 30 days.
Why it matters
Missing the 83(b) window can cost founders enormous tax bills as their shares appreciate, a painful, avoidable mistake. It is one of those small deadlines with outsized consequences that every US founder with vesting equity should know.
For example
A US founder with vesting stock files an 83(b) within 30 days of the grant, paying tax now while the shares are worth almost nothing, and avoids a huge bill as they appreciate.
Related terms
Go deeper
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
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