409A Valuation Calculator: The Smart Way to Stay Compliant and Confident
Accurately determining the fair market value (FMV) of a private company's common stock is not just a formality—it's a legal necessity. This is where a 409A valuation calculator plays a crucial role. Whether you’re a startup founder, CFO, or financial controller, having access to a reliable and efficient tool helps streamline the valuation process while ensuring IRS compliance. At 409.ai, we provide a smarter, faster, and more cost-effective way to navigate 409A valuations without the traditional headaches. What is a 409A Valuation Calculator? A 409A valuation calculator is a specialized tool used to estimate the FMV of a private company's common shares. These valuations are mandatory for any company issuing stock options or equity to employees, advisors, or consultants. Under Internal Revenue Code Section 409A, valuations must meet strict criteria to protect both the business and its stakeholders from potential tax liabilities. A calculator helps companies stay aligned wi...