Founder Equity, Stock Options, and the 409A Valuation
Granting stock options without a defensible 409A valuation can expose employees to significant tax consequences. This guide explains how IRC Section 409A applies to founder equity and employee stock options, how fair market value determines option strike prices, when to obtain or refresh a 409A valuation, the three IRS safe harbor methods, and how 83(b) elections fit into the broader equity compensation framework.
409A Safe Harbor Method: Complete Compliance Guide
A practical guide explaining the IRS 409A safe harbor framework, including the independent appraisal requirement, documentation standards, valuation refresh timing, common compliance mistakes, and best practices for maintaining defensible 409A valuations.