Filing a Section 83(b) Election: Did Your Client Miss the 30-Day Deadline?
A recurring issue for many business lawyers involves an employee who receives stock subject to vesting conditions. The normal approach is to have the employee file a “Section 83(b) election” with the IRS within 30 days of receiving the stock. The Section 83(b) election is an election to recognize any income associated with the stock grant immediately upon receipt of the stock. If the employee does not file the Section 83(b) election within 30 days of the grant date, the employee is generally forced to recognize the stock value as income as he or she satisfies the vesting conditions – which will often happen at a time when the stock has appreciated and the amount of taxable income has correspondingly increased.
When is an LLC Investor Doing Business in California?
Many business and tax lawyers have long assumed that a partnership’s activities are imputed to all of its partners in determining whether the partners are engaged in business activities within the State of California.