Would an 83(b) election make our income taxable in the US?
December 10, 2003
Date: 12 Nov 2003
We are two Dutch nationals about to form a Delaware corporation.
We are considering filing an 83(b) election because we want to attract investors.
We are also considering moving to the States, in which case we would become US taxable, but this is not certain.
Does filing an 83(b) election mean that we will be taxable in the States when selling our stock, even if we are not taxable in the States?
I thank you very much for your answer.
Date: 24 Nov 2003
The § 83(b) election relates to property received in connection with employment. It doesn’t have anything to do with attracting investors.
Whether you will be subject to US tax relates to whether you are a US resident or are compensated for services rendered in the US.
You really should find a tax advisor who knows US tax law to work with. Since you are Dutch nationals, you have special problems that favor retaining an international accounting firm.