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.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Drift: A Tale of Two Transformational Leaders

Introducing: shesaid.so Sweden!

Community Group Buy in SEA, will it work?

No-Code Startups is the Future.

From College Grad to Future Market Leading Machine

Bangalore Dreams: talking entrepreneurship with Nivin and Aashish

Sahara Ventures Innovation Ecosystem Canvas, Get to Know Your Role in The Ecosystem, and Adopt…

A successful referral culture for your edtech company can support growth a lot. Here’s how.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Clemta

Clemta

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

More from Medium

The argument for Games in Practice vs Drills — Bones 🦴 not Cones 🚧

Why ‘Disciplined Agile Delivery’ is not a great WoW

Max distance estimation for cross country flying

AmyDewFan27 Flashback: Former 2-Time XFINITY Series champ of Tyler Reddick’s Richmond scheme from…