She Has Leverage

Tax and legal terms

Section 83(b) Election

A Section 83(b) election is an election to include the value of property you receive for services, such as certain restricted founder shares, in taxable income when it’s transferred rather than when it vests. It generally must be filed with the IRS within 30 days of the transfer and can create tax cost or forfeiture risk. It matters more to founders and employees than to a fund LP.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

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