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What Happens If You Do Not File Section 83(b) Election?

Section 83(b) election form is still a grey area in the minds of business owners and startups. People have strong doubts about what it is, how it is filled, and what are the benefits. Luckily, this text will answer all of your questions.

Section 83(b) Election is a provision under the Internal Revenue Service (IRS) that gives an employee, or founder, the option to pay taxes on the total fair market value of the restricted stock at the time of granting. Section 83(b) Election provides a tax benefit to shareholders of companies and startups that have low share value, if form Section 83(b) is completed.

What is Section 83(b) Election?

Section 83(b) Election is a provision under the Internal Revenue Service (IRS) that gives an employee, or founder, the option to pay taxes on the total fair market value of the restricted stock at the time of granting. Section 83(b) Election provides a tax benefit to shareholders of companies and startups that have low share value, if form Section 83(b) is completed.

How to Fill Out Section 83(b) election form?

  1. Go on Clemta.com and please sign up
  2. If you have a company, you can fill out to 83(b) election form
  3. If you don’t have a company, we can establish a company within minutes with Clemta.

CLEMTA is Software as a Service (SaaS) platform that sets up a business/company in the United States.