Tax
Section 83(b) Election Deadline
Quick definition
30 calendar days from the date restricted stock is issued — no extensions, no exceptions.
The §83(b) election must be POSTMARKED within 30 days of stock issuance. No filing extensions allowed. Missing the deadline forfeits the election — and means taxes are computed at each vesting event on then-current FMV instead of at grant. For founders, missing §83(b) can cost millions later. File via certified mail with return receipt; keep proof of postmark date. Email confirmation of filing to the company is good practice.
Related tax terms
R&D Tax Credit
Federal credit for qualified research expenses, usable against payroll tax by startups.
Delaware Franchise Tax
Annual tax for Delaware corporations, often quoted wildly too high if calculated incorrectly.
Nexus (Sales Tax)
The connection with a state that triggers a tax-collection obligation.
QSBS (Qualified Small Business Stock)
Tax exemption for gains on qualifying startup stock held 5+ years.
Frequently asked questions
- What is Section 83(b) Election Deadline?
- The §83(b) election must be POSTMARKED within 30 days of stock issuance. No filing extensions allowed. Missing the deadline forfeits the election — and means taxes are computed at each vesting event on then-current FMV instead of at grant. For founders, missing §83(b) can cost millions later. File via certified mail with return receipt; keep proof of postmark date. Email confirmation of filing to the company is good practice.
- Why is Section 83(b) Election Deadline important for startups?
- Section 83(b) Election Deadline is a tax concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does Section 83(b) Election Deadline belong to?
- Section 83(b) Election Deadline is a Tax term in the StartupCFO finance glossary — alongside other tax concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about Section 83(b) Election Deadline?
- Beyond this definition, see the related tax terms below, or explore StartupCFO's insights and tools that put Section 83(b) Election Deadline in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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