Much safer to buy your shares for cash, on top of the ip. In a new c Corp, buy for par or slightly higher. 1mm shares at $0.0001/share. Skip lunch that day. Make sure it is all well documented.
Unrelated. 83b is only if your stock is restricted/at risk of repurchase/vesting. If it is, 83b it obviously, but that is always the case. 83b just means tax me at time of initial grant vs. on every vest at then current market value. It is not tax relief.
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Does this apply to founders as well? If I've got a side project, is it worthwhile to start a C corp right now?
And especially: does a founder's contribution of initial IP, rather than cash, for founding shares also qualify for the tax-free treatment?
Much safer to buy your shares for cash, on top of the ip. In a new c Corp, buy for par or slightly higher. 1mm shares at $0.0001/share. Skip lunch that day. Make sure it is all well documented.
For a new company being incorporated, how does this compare to an 83(b) election in terms of tax-relief benefits?
Unrelated. 83b is only if your stock is restricted/at risk of repurchase/vesting. If it is, 83b it obviously, but that is always the case. 83b just means tax me at time of initial grant vs. on every vest at then current market value. It is not tax relief.
Yes, everything I have seen makes it apply to founder shares. (or even semi founder employees who buy stock vs options). Of course ianal.