Legal and Tax Risks of Skipping 409A Valuation for Startups
Skipping a 409A valuation exposes startups to significant legal and tax risks. Without a defensible fair market value, the IRS may classify stock options as discounted, triggering penalties, back taxes, and interest for employees. It can also undermine compliance, complicate fundraising, weaken investor confidence, and create long-term financial and operational liabilities for the company.
https://www.ganjingworld.com/news/1i9q8d47qf56OBdPNMANnGSuW1tj1c
Skipping a 409A valuation exposes startups to significant legal and tax risks. Without a defensible fair market value, the IRS may classify stock options as discounted, triggering penalties, back taxes, and interest for employees. It can also undermine compliance, complicate fundraising, weaken investor confidence, and create long-term financial and operational liabilities for the company.
https://www.ganjingworld.com/news/1i9q8d47qf56OBdPNMANnGSuW1tj1c
Legal and Tax Risks of Skipping 409A Valuation for Startups
Skipping a 409A valuation exposes startups to significant legal and tax risks. Without a defensible fair market value, the IRS may classify stock options as discounted, triggering penalties, back taxes, and interest for employees. It can also undermine compliance, complicate fundraising, weaken investor confidence, and create long-term financial and operational liabilities for the company.
https://www.ganjingworld.com/news/1i9q8d47qf56OBdPNMANnGSuW1tj1c
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