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 Valuation Refresh Schedule: When to Update Your Valuation
A practical guide explaining when companies should refresh a 409A valuation, how the IRS evaluates valuation staleness, common refresh triggers, the reality behind the “90-day rule,” and how refresh timing changes as companies mature.
409A Audit Defense: How to Prove Your Valuation to the IRS
Learn how to defend a 409A valuation during IRS scrutiny, including safe harbor protection, appraiser qualifications, documentation, material events, and audit red flags.
Board Guide to 409A Valuations: Your Role, Responsibilities, and Protection
Learn what board members should review before approving a 409A valuation, including appraiser qualifications, valuation methodology, safe harbor reliance, material events, and documentation.
How to Coordinate 409A Valuations with Qualified Small Business Stock (QSBS) Tax Planning: A Founder's Guide to Maximizing Tax Benefits
Learn how 409A valuations and QSBS tax planning work together, where they differ, and what founders should track around option grants, §83(b) elections, funding rounds, and exit planning.