What is a Section 83(b) Election and Why Should You File One? Blog Post

Many founders come to us with questions about Section 83(b) elections. They have often heard in startup circles that they need to file these, but may not understand when it makes sense to do so or what problem the Section 83(b) election solves. This article seeks to clear up some of the confusion about Section 83(b) elections.

Section 83(b) Election

A Section 83(b) election is a letter you send to the IRS letting them know you want to be taxed on your unvested equity, such as shares of restricted stock, on the date you acquired the equity rather than on the date the equity vests.

Incorporation Package (Delaware)

Click here to use the Cooley GO Docs Incorporation Package Generator Note that these documents are intended only for US companies incorporating in Delaware. The Cooley GO Docs Incorporation Package Generator allows you to generate…

PBC Incorporation Package (Delaware)

Click here to use the Cooley GO Docs PBC Incorporation Package Generator Note that these documents are intended only for US companies incorporating in Delaware as a public benefit corporation. Important: To generate public benefit corporation...

Establishing the Ownership Culture: Stock vs Options Blog Post

Most startups offer equity participation in their company to people providing services to the company, whether as employees, consultants, advisors or otherwise (which we will call “service providers” in this…