409A Valuation Services
Let’s make a Fast, Precise, and IRS‑Compliant Valuations for Your Business with Virtue CPAs
At Virtue CPAs, we deliver accurate, audit‑ready 409A fair market value (FMV) reports trusted by startups, private companies, and growth‑stage businesses across the USA.
Whether you’re granting stock options, preparing for fundraising, or ensuring audit readiness, our reports are:
25+
YEARS EXPERIENCE
500+
CLIENTS
What Is a 409A Valuation?
A 409A valuation determines the fair market value of your company’s common stock. This value is used to set the strike price for employee stock options and other equity awards.
It’s required by Section 409A of the U.S. Internal Revenue Code and is essential for:
- Staying IRS compliant
- Avoiding severe tax penalties for you and your employees
- Building trust with investors, boards, and auditors
Most companies update their valuation every 12 months or after major events such as new funding, acquisitions, or restructuring. The valuation must be performed by an independent, qualified third party to hold up under IRS or investor scrutiny.
The Reason we need a 409A Valuation
Granting stock options without a valid 409A valuation can have serious consequences:
- IRS penalties & back taxes for both the company and employees
- Loss of IRS safe harbor protections
- Investor pushback or reduction in company valuation during fundraising
A properly prepared 409A valuation:
- Proves compliance
- Strengthens investor and board confidence
- Keeps your equity program fair and defensible
Who Needs a 409A Valuation?
You need a 409A valuation if you are:
- A startup or early‑stage company issuing stock options to employees.
- Any private company granting stock options, RSUs, or equity-based pay to staff, advisors, or consultants.
- A business with U.S. subsidiaries (even if headquartered abroad) offering equity to U.S. employees.
- Preparing for a fundraising round, acquisition, or IPO and wanting to ensure investor confidence.
- Operating with a complex capital structure that includes multiple share classes, SAFEs, or convertible notes.
- An employee or consultant receiving equity your future tax liability depends on correct FMV pricing.
Our Credibility Framework
What makes 409A Unique?
Unlike general business valuations, a 409A valuation follows strict IRS rules to set the fair market value (FMV) of a private company’s common stock for tax purposes. It:
Accurate Valuation
Defines accurate stock option strike prices
Regulatory Protection
Provides safe harbor protection from IRS penalties
Holistic Assessment
Considers company stage, market conditions, and equity rights
Audit-Ready Compliance
Requires detailed, audit‑ready documentation
Essential for Equity Planning
This precision makes it essential for startups and private companies offering equity.
Why 409A Valuation Matters
A valid 409A valuation:
- Ensures IRS compliance and avoids costly penalties
- Protects employees from unexpected tax bills
- Sets fair, defensible option prices
- Boosts investor and board confidence during fundraising and audits It’s not just a legal requirement it’s a safeguard for your company’s reputation and financial health.
What is the process for 409A Valuation?
Initial Consultation
We discuss your goals, timelines, and company structure.
Data Collection
You provide your cap table, financial reports, funding history, and other key documents.
Method Selection
We choose the most appropriate IRS‑approved approach (Income, Market, or Asset method).
FMV Calculation
We apply valuation models and adjust for classes of stock, rights, and marketability.
Audit‑Ready Delivery
You receive a fully documented report with assumptions, calculations, and conclusions.
Post‑Valuation Support
Assistance for audit queries, investor presentations, and annual updates.
How long does it takes?
At Virtue CPAs
- Standard delivery: 10-15 business days
- Expedited: 8-10 business days (extra fee) We combine speed with thorough, IRS‑compliant analysis so your report is both fast and defensible.
Trusted 409A Valuation Services Across Key Cities
We work with clients coast‑to‑coast from Silicon Valley tech startups to Atlanta service firms.
Why Businesses Chooses Us
When it comes to 409A valuations, accuracy, compliance, and speed aren’t optional they’re essential. At Virtue CPAs, we combine deep technical expertise, with a client‑first approach, making sure your valuation is defensible, audit‑ready, and delivered on time.
Get Your 409A Valuation Started With Virtue CPAs
No delays. No guesswork. Just fast, accurate, compliant 409A valuations that protect you and your team.
Frequently Asked Questions About 409A Valuations
1How often should I get a 409A valuation?
Every 12 months, or immediately after any major event (funding, mergers, restructuring).
2How long does it take?
We deliver standard reports in 5–10 days and expedited in 1–2 days.
3What do I need to provide?
Cap table, financial statements, funding details, and a basic company overview.
4Do foreign companies with U.S. staff need one?
Yes, any U.S. equity grants must follow IRS 409A rules.
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