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by pjot 1441 days ago
Using the 83(b) election, when you’re granted RSUs you are able to pay tax on the value at the time of grant. This can mitigate a lot of the pitfalls mention in the thread.

Disclaimer: this is not financial advice.

https://www.investopedia.com/terms/1/83b-election.asp

1 comments

By the time a company is issuing RSUs instead of options, the cost to pay those taxes at time of grant is likely out of reach for all but the most already-well-off employees.
Not necessarily - I’ve worked for two startups now that issued RSUs to early employees first, and later switched to an option based package.
Your experiene may be different, but I've only even heard of this (RSUs before options) at the very early, pre-fundraising, stage. And this only works because the taxable value of these RSUs at grant is basically $0.

I'm not sure if this approach would make sense after any sort of traction/fundraising.