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Filing 83(b) election with NO 409a or outside funding

  • 1.  Filing 83(b) election with NO 409a or outside funding

    Posted 03-14-2024 09:16
    Need quick insight on Advisory Shares
     
    I am getting paid in 4.5 yrs vesting schedule w) 6 month cliff.
     
    1 class of Common 
    Some trigger/accelerator events that I can control.
     
    I need to file my 83(b) letter with IRS immediately-Today. (To accelerate the vesting ((on paper)) and pay income taxes on all the R shares today. 
    My challenge is: what do I put for the "Fair Market Value" of the private shares? 
     
    There are NO 409a valuations or outside funding rounds that value the equity. 
     
    Can I just use the par value?
     
    The Only cash investment (equity) is from the main founder (50% ownership). Can I use this as the valuation?  🤏
    It is probably under $100k with some IP. 
     
    Then divide my minority % and apply a standard discount % for illiquidity/marketability (restricted stock)? 
    Thank you very much 🙏
    📈🤞


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    Phillip Cantore
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