As of January 1st, 2005, the American Jobs Creation Act was amended to include Section 409A of the Internal Revenue Code (IRC). The regulation refers to rules surrounding non-qualified deferred compensation. This…
You’ve just recruited the first executive for your startup: a hotshot CIO. Naturally, you couldn’t offer her a big salary, but she’ll be the first recruit to receive company stock…
The purpose of a 409A valuation is to determine the value of the shares that your privately held company can offer to your employees in the form of stock options…
As with most new rules and laws, 409A plans were established in response to a significant public scandal—the Enron scandal. As talk of bankruptcy was looming, many Enron executives arranged…
Every new venture starts with a dream. If you are a budding entrepreneur whose dream it is to start an innovative company, the road to making that dream a reality…
Want to learn how to avoid 409A penalties? Good, you're in the right place! Nothing jeopardizes the stability of your growing company like having the IRS down your throat. But…
You’ve just recruited the first executive for your startup: a hotshot CIO. Naturally, you couldn’t offer her a big salary, but she’ll be the first recruit to receive company stock…
If you’re already familiar with IRC 409A, you probably know that safe harbor 409A valuations are important. But do you know how important they are? Let’s find out. We’ll dive…
Here’s the deal. 409A valuations will wreck your employees’ lives and run your business into the ground, in that order, if you do not do them right. We’ll get into…
Section 409A of the Internal Revenue Code regulates non-qualified deferred compensation agreements between a corporation (a “service recipient”) and its employees, contractors, board members, etc. (“service providers”). In this article,…