Can I perform the 409A valuation myself, or do I need to hire an outside expert?
While technically you can attempt to come up with a valuation yourself, it is highly recommended to engage an independent, qualified third-party appraiser. This is because the IRS is more likely to respect a valuation performed by an independent party with the appropriate credentials and experience. A third-party valuation also provides a "safe harbor" presumption of reasonableness that can protect you and your employees in the event of an IRS audit.