409A Report

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What is a 409A Report?

409A reports, also known as 409A valuation reports, are fair market value (FMV) appraisals of a business’s private stock shares. It’s necessary to file a 409A report to comply with the guidelines in the section. They use “safe harbor methodologies, including the illiquid startup presumption, which is perfect for new startups.

409A Report Examples

Example of what 409A reports include:

  • Example 1. A summary of valuation methodology
  • Example 2. Total private stocks FMV
  • Example 3. Purpose and scope
  • Example 4. Summary of findings
  • Example 5. Appraisers contact information

Here’s another article about 409A valuations.

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