http://disqus.com/by/jwootton/enFri, 02 Jan 2009 15:57:10 -0000http://www.startupcompanylawyer.com/2008/02/15/what-is-an-83b-election/#comment-4836324<p>Yokum, Great post. In preparation to incorporate a startup as a sole shareholder, I was planning to immediately upon filing the articles, first purchase for cash at 10 cents per share 100% of my new corporation's common stock, file the 83(b) within 30 days, followed later by a contribution of a personal service agreement worth a very large fair market value; so as to avoid incurring a large tax on receiving the stock if it had been exchanged for the personal service agreement at the outset. There would be no restrictions or forfeiture provisions. I understand about needing counsel before executing; but could this conceivably work to avoid the large tax on the large valuation of the company and its stock after the contribution of the personal service agreement? Thanks again for your excellent post. <br>Jim</p>jwoottonFri, 02 Jan 2009 15:57:10 -0000