Use this advisor agreement tool to quickly and simply create templates for your company.

Use this consultant confidential information and invention assignment agreement tool to quickly...

Use this employee offer letter tool to quickly and simply create templates for your company.

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A 409A valuation should be updated at least once every 12 months or if earlier, after a material event that could affect your company's value, such as a new round of funding or secondary sale. It’s important to maintain current valuations to remain

The appraiser will typically require detailed information about your company, including financial statements, business plans, information on prior funding rounds and/or secondary sales, and details of any material contracts or customer

A 409A valuation is an appraisal of the fair market value of a private company's common stock. As a founder, you need this valuation to ensure that your stock options are issued with an exercise price at or above FMV, which is a requirement under

It is important to make sure there is a written agreement in place with any employee, consultant or other party who creates intellectual property ("IP") for the company which validly transfers to the company all rights to the developed IP. Although

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

You will likely want to either have an offer letter or employment agreement and a Confidential Information and Invention Assignment Agreement (CIIAA) with each employee. An employee offer letter is used with most rank-and-file employees. In

An alternative to granting stock options (which should not be done in the absence of a current 409A report) is the issuance of restricted stock, which does not fall under the stringent IRS regulations applicable to options. This provides a certain

Issues pertaining to 409A valuations may arise during an Internal Revenue Service (IRS) audit or as part of the due diligence process in the event of a priced investment round or a company exit, such as an acquisition or initial public offering.

No, a 409A valuation, which reflects the value of the common stock, is distinct from the overall company valuation typically negotiated during a funding round and which takes into account projected business value and investor rights such as a

Failing to obtain a 409A valuation can lead to significant tax issues for your employees, as options might be deemed underpriced and therefore subject to immediate taxation along with a 20% federal penalty tax and potential state penalties. These

An Employee is a person hired by a business to perform certain services, over which services the business has substantial control. Employees have certain rights that are not granted to consultants and independent contractors.

See Confidential Information and Invention Assignment Agreement

A Service Provider is an individual or entity that provides services to a company. Most often the Service Provider can be categorized as an employee, consultant, advisor or director of the company. Certain securities law exemptions are only