TITR: Section 83(b) - The ‘b’ is For Bomb

There’s a place in the multiverse where RayCo becomes a modest empire because of the actions of its exceptional leadership.

If that happens to be this universe, I almost caused that guy a lot of frustration because I didn’t know about the 83(b).

As it turns out, you have 30 days from the date your founder stock is granted to file an 83(b) election.

If you do it, you lock in the tax treatment early—when the company is worth effectively nothing—and start the capital gains clock.

If you don’t, you can end up paying taxes on equity that didn’t cost you anything to begin with, based on whatever it’s worth as it vests. If things go well, that gets expensive fast.

We filed on time.

Part accident, part intent.