Year-end compliance checklist for founders
As the year comes to a close, now's the time to make sure your equity house is in order. If you're a US C-Corp, here are three critical items you need to end the year and start a new one with confidence.
QSBS Attestation
Proper Qualified Small Business Stock documentation could save your shareholders millions in taxes at exit—up to 100% federal tax exclusion on gains. Cake handles this automatically, generating the attestation letters needed to prove QSBS status down the road. Make sure you're documenting everything properly from day one.
409A Valuations
Planning to make offers in early 2026? You'll need a current 409A valuation to issue compliant stock options. Cake makes it simple to order directly through the platform and bundle it with your subscription.
3921 Tax Reporting
Your employees need these forms to report their option exercises. Getting ahead of tax season now means your team isn't scrambling in March when the deadline hits.
The deadline is real. Get these locked in now so you can start 2026 clean and compliant.
Fundraising, benchmarking, and better UI
SAFEs 2.0
We've completely rebuilt our fundraising flow, improving on how SAFEs, convertible notes, and custom notes work in Cake. When you're raising money, your goal isn't to simply create a SAFE note, it's getting money in the bank so you can keep building.
Now the workflow reflects that reality:
- Add your investor and enter the investment amount
- Use our templates or upload your own documents
- Get proper documentation that updates your cap table automatically
- Your investor signs digitally—all in one seamless workflow
No matter if it's SAFEs, convertible notes, or custom notes, Cake helps things move sweetly.
Market equity benchmarks
One of the biggest questions we hear from founders: "How much equity should I offer this hire?" We understand that you want to be competitive without giving away too much too early.
Now we have a simple solution:
- Pick the role, level, and your funding stage
- Instantly see what the market is paying in equity compensation
- Draft an offer right there in one click
Not having to guess whether you're being fair puts a bit of extra icing on that slice you're sharing.
UI improvements and more
We've shipped a host of user interface improvements throughout the platform, making your everyday workflows smoother and more intuitive. These updates are all live in your account right now!
The world seems to put its foot on the accelerator at this time of year, but the Cake team is here to help you close out 2025 strong. All these features are live in your account. Log in to your account and check them out.
Need help with year-end compliance? Visit our Help Center or reach out to our support team.
This article is designed and intended to provide general information in summary form on general topics. The material may not apply to all jurisdictions. The contents do not constitute legal, financial or tax advice. The contents is not intended to be a substitute for such advice and should not be relied upon as such. If you would like to chat with a lawyer, please get in touch and we can introduce you to one of our very friendly legal partners.
