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hi I'm Brett Sanctum the right-brain business lawyer and a business consultant today we are talking about something that a lot of startup founders business sort of struggle to understand there are 83 be elections so 83 and then be in parentheses which is a reference to the IRS code 83 B let's talk a bit about where 83 B elections come into play they come into play when someone is given stock or LLC interests a type of equity that is vested over time so vesting means you're getting something today, but it's rEvally not yours you can't walk away with it so in the case of stock or LLC interest or some other type of equity usually not always, but usually you could vote those shares, and you get dividends from them but if you were to leave before the vesting kicks in then you don't get to walk away with the shares so typical Silicon Valley style vesting for founders in a venture capital backed company is going to be four years with a one-year cliff what that means is if our founder is given


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