409.ai Explains: What is a 409A Valuation and Why It Matters for Startups

409.ai explains that a 409A valuation determines the fair market value of a startup’s common stock for tax-compliant equity compensation. It’s essential for issuing stock options legally and avoiding IRS penalties. Accurate 409A valuations support transparency, attract talent, and protect both the company and employees during growth and fundraising stages.

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