If you’re a founder, early employee, or startup investor, you’ve probably heard whispers about the 83(b) election. But what is it really, and why does it matter so much for your taxes? 💡
In this video, we’ll break it down in plain English:
✔ What an 83(b) election is and how it works
✔ Why it can save you millions in taxes by accelerating income early
✔ The difference between paying ordinary income tax at 37% vs. long-term capital gains at 23.8%
✔ The risks (like leaving before vesting or the stock price dropping)
✔ The 30-day IRS deadline you can’t miss
✔ New IRS Form 15620 and how it’s used to file your election
Bottom line: The 83(b) election is a powerful tool for founders and early employees but it’s also a gamble. Knowing when (and when not) to use it is the key.
