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Should founders file 83b elections?

Filing an 83(b) depends on a few things. Here are a couple of basic concepts to keep in mind:

  • Stock options do no require an 83(b) unless you decide to exericse those options early
  • If you received founders stock without any limitations (including vesting) then you don’t have to file an 83(3) b
  • If you purchased restricted stock then you will mostly likely need to file an 83(b)

To better understand your options, you should consult a startup attorney. LawTrades would be happy to connect you with an attorney who can walk you through some of the finer details. Check out our website and let us know if we can be of assistance!

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