Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
A 409A valuation is an independent appraisal of the fair market value (FMV) of a private company's common stock. The 409A valuation is required by the IRS for private companies that issue stock options to their employees to ensure these options are not issued at a discount.
The 409A refers to the IRS Section 409A tax code established in 2005, which requires companies to grant their stock options at FMV to avoid potential tax penalties. The valuation process must be performed by a qualified third-party expert to maintain objectivity. The valuation must be refreshed at least once a year or upon the occurrence of any material event such as receiving new financing, significant revenue growth, or a substantial change in business outlook.
Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.
We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.
Get the peace of mind that comes from partnering with our experienced finance team.