How to pronounce“83b”in English

your 83b then you don't have to pay taxes until you ultimately sell the stock until you have an exit event so your 83b will protect you from all those

have the 83b issue is only for stock you actually purchase options have their

this there you go you file your 83b to make sure you don't have to pay tax on

that vesting event and the 83b election basically says you agree to pay tax on

whole own tax treatment but the 83b applies to stock that you purchase so

left so something to think about um the 83b election has to do with

stock by the way just one final note on 83b elections um if you haven't filed them some folks are doing it it's it can the the consequences for not filing can

I own the shares today and I'll file my 83b election and I own those shares but they're vesting over time so I can vote those shares today but if I leave and I

important is um something that's called an 83b election and this is something you should remember personally because you'll be very personally affected by

option dos is just every employe anyone can do an 83b it's not it's not a corporate document it's a

founder stock and then don't forget the 83b election what that is is if you get stock that's the magic words under a tax

stock at a company forget to file their 83b and then come to the VP of HR and

want so there's something you can do which is called filing an 83b election and what that is it's an odd little thing where you're electing when you get

even knowing that you might not keep it so the issues around an 83b are that it

the founder stock purchase agreement form that we have there's a form of 83b on the back you try and make it as easy for your people as possible it is only

who's in India or China wouldn't need to file an 83b because they're not you know they don't have a even a taxpayer ID number in the US but the the weird

because every time you invest you have to yeah well not if you file your 83b if you file your 83 I guess I didn't tell you the result of filing 83b if you file

as long as you take care of that yeah as long as you file the 83b uh you don't have that tax issue and so then you have all the other reasons

us taxpayers so if someone is in the country but they don't pay us taxes they don't have to file an 83b but there's a one little Quirk there um sort of a

little Quirk there is if they move to the us partway through their vesting and they didn't file in 83b when they weren't even a US taxpayer they will now

is when you get get your stock you have to file something that's called an 83b election it's due within 30 days of when you got your stock period there's no

stock is growing so so quickly the taxes that I'm owing on a quarterly basis for failing to file my 83b are are a real problem for me so it can have a very bad

impact and you want to make sure that you you just don't let that happen that you don't forget your 83b election so and any um more questions on

up with your company Council to do that or you can do it I you say it got filed just making sure someone puts in writing that it was filed the 83b election was

little bit of cash they'll have income on that cash but they won't have any taxable event on the shares assuming they they make their 83b or anything

a great result because then he didn't have any stock so I I can't um I can't uh emphasize enough how important it is to follow the 83b election and on the uh

GSB entrepreneurial studies website there is a form of a Founder stock purchase agreement and there is a little handout we have on how to file an 83b

a Founder who is not a US taxpayer but believes that they will be over the course of their vesting go ahead and file an 83b because doesn't hurt you to

check you get so I don't understand what the company buys back then because only the unvested options just return so uh there's something called an 83b election