Safe Harbor Rules for 409A Valuations Explained for Founders


409ai

Uploaded on Feb 2, 2026

Category Technology

This piece explains Safe Harbor rules in 409A valuations, helping founders understand how independent, defensible valuations protect against IRS penalties. It clarifies eligibility, valuation methods, timing requirements, and documentation standards, enabling startups to price equity confidently, reduce compliance risk, and maintain credibility with investors, auditors, and employees as the business grows.

Category Technology

Comments