Fundraising
83(b) election
An 83(b) election is a US tax filing choosing to be taxed on restricted stock at grant rather than as it vests. When stock is worth very little at grant, the election minimises tax and starts the capital gains holding period early. It must be filed within 30 days of grant.
In plain terms: A form that taxes your shares now, while they are worth nothing, instead of later.
Why it matters
The 30-day deadline is absolute and cannot be extended. Missing it can mean being taxed at each vesting date on a valuation set by a funding round — tax on paper gains from shares you cannot sell.
Common misunderstanding
Assuming it can be filed late or fixed afterwards. It cannot.
Read the full guideScaling and fundraisingRelated terms
Source: IRS — Topic 427, Stock options. This is a definition, not tax or legal advice — verify against the primary source before acting.