Do we need to do a 409A valuation before offering equity to our first employee ?

We are going to hire our first sales rep (and that will be our first employee). We are going to offer the sales rep some equity. Do we need to do a 409A valuation?


      • If you don’t have a lawyer make sure you find one that is willing to give things to you in plainspeak. Otherwise I’ll save you the $300 and give you the answer you’re likely to hear: “technically you should”.

        Many attorneys will not budge other than that that statement – you might get more legal jargon on why “technically” you should but it will go over your head – as they are just covering their ass.

  • If you offer options – yes. If you offer RSAs (Restricted Stock Awards), no. When you have a meaningful valuation, you should do options. Early on, RSAs work very nicely.

  • … [Trackback]

    […] Here you will find 31769 additional Info to that Topic: startupsanonymous.com/question/need-409a-valuation-offering-equity-first-employee/ […]

  • … [Trackback]

    […] Read More Info here to that Topic: startupsanonymous.com/question/need-409a-valuation-offering-equity-first-employee/ […]

  • {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

    You may also like

    >