83(b) Election for an LLC - Free Download on UpCounsel

83(b) Election for an LLC

An 83(b) election is an IRS filing which is typically filed when vesting is placed on a founding Member's ownership. If the founder/employee does not make the 83(b) election, then he or she may have income as the ownership “vests" and will have to pay income taxes on the income.


83(b) ELECTION for an LLC

This statement is being made under Section 83(b) of the Internal Revenue Code pursuant to Treas. Reg. Section 1.83-2.

(1) The name, address and taxpayer identification number of the undersigned are:

Name:  [Member Name]
Address:  [
Member Address]
Social Security Number:  [
Member Social Security]

(2) Description of the property with respect to which the election is being made:

___ Membership Interests of [Company Name], LLC (the “Company”).

(3) The date on which property was transferred was [Date of Grant].  The taxable year in which the election is being made is [Tax Year].

(4) The nature of the restrictions to which the property is subject is:

The Interests are subject to forfeiture and cancellation if the undersigned’s services to the Company are terminated for any reason.  These forfeiture restrictions lapse with respect to one third of the Interests on each of the first three anniversaries of the initial grant date.  As a result, the Interests remain subject to risk of forfeiture.

(5) Fair market value:

The fair market value at the time of transfer (determined without regard to any restriction other than restrictions that by their terms will never lapse) of the property with respect to which this election is being made is $0.00.

(6) Amount (if any) paid for the property.

The amount paid by the taxpayer for the property is $0.00 in the aggregate.

(7) Furnishing statement:

A copy of this statement was furnished to [Company Name], LLC.

Dated:  [Date]

 


Any [GREEN] highlighted language is intended to be filled in by the user. Any [YELLOW] highlighted language is considered optional or conditional by the attorney community. Consult with an attorney before using this document. This document is not a substitute for legal advice or services. Refer to our Terms of Service for more details.

This form has been prepared for general informational purposes only. It does not constitute legal advice, advertising, a solicitation, or tax advice. Transmission of this form and the information contained herein is not intended to create, and receipt thereof does not constitute formation of, an attorney-client relationship. You should not rely upon this document or information for any purpose without seeking legal advice from an appropriately licensed attorney, including without limitation to review and provide advice on the terms of this form, the appropriate approvals required in connection with the transactions contemplated by this form, and any securities law and other legal issues contemplated by this form or the transactions contemplated by this form.

Was this document helpful? Leave a comment
Want High Quality, Transparent, and Affordable Legal Services?