About Get 409A Valuation
What a 409A valuation is, which safe harbour you qualify for, and what happens without one
What is on this site
One question, "how much does a 409a valuation cost", answered with a checker that works on the page with no account, 4 guides on the questions around it, a data table you can cite (the figures and their method), and the sources every figure rests on.
- The three 409A safe harbours, and what each one demands: Independent appraisal, the illiquid start-up presumption and the formula method. The conditions on each, and which condition stops holding first.
- When a 409A valuation expires, and what a material event does: Twelve months is a ceiling on the age of the valuation at the grant date, not an annual subscription. What ends it early, and what to do about grants in the gap.
- What happens if you grant options without a 409A valuation: Section 409A(a)(1) puts the exposure on the option holder: income inclusion, interest at the underpayment rate plus one point, and a 20 percent additional tax.
- Why a 409A value is lower than the price investors paid: Investors buy preferred stock with liquidation preferences and control rights. A 409A values the common. The gap is a feature of the instrument, not a discount.
Reach us
Contact for a question about the site, or hello@get409avaluation.com. The legal terms are on Terms and Privacy.
Get 409A Valuation is an independent site operated by Ellul Solutions Ltd. It is not affiliated with, endorsed by or connected to the Internal Revenue Service or any government body, and it is not a valuation firm, a law firm or a tax adviser. Nothing here is tax or legal advice on a particular grant, and no page on this site produces a valuation. Every condition stated is taken from the text of Treas. Reg. 1.409A-1 or 26 U.S.C. 409A as published on Cornell LII and read on the date shown at the top of the page, and is quoted rather than paraphrased where the wording carries the meaning. We publish no price for a 409A valuation anywhere on this site, because no public source sets one. We take no commission from any provider and carry no paid placements.