By: Preferred Return, a Clarus R+D Partner

What is a 409A Valuation Report?

Partners | April 19, 2019 | 1 min read
What is a 409A Valuation Report?

When you issue stock options, you might unknowingly be exposing your employees to substantial tax liabilities. To protect them (and your company) against audits, you need a reliable 409A valuation to comply with the law.

Get answers to these important questions and more.

  • What is a 409A valuation, and where do 409A rules come from?
  • Why am I required to do a 409A valuation? Do I actually need one? Can’t I just use a rule of thumb?
  • What happens if I don’t get a a 409A and just wing it?
  • When do I need a 409A?
  • Why would my 409A valuation be different than my pre-money-valuation or post-money-valuation?
  • How long is the 409A good for? Can I just get one report and be done?
  • How long does it take and how much does it cost?
  • How do you figure out the value of private stock?
  • What data do I need to provide to get a 409A?

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