83(b) election
Also called: Section 83(b) election
ELI5
A US tax form that may change when restricted shares are taxed.
Used in conversation
“The 83(b) election has a strict deadline.”
Definition
A US tax election allowing certain restricted-property recipients to elect taxation at grant rather than vesting.
Here “83(b) election” means: A US tax election allowing certain restricted-property recipients to elect taxation at grant rather than vesting.
Pitch context
You will see “83(b) election” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.
Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16