Do I need a new 409A every year?

Yes. Cake tracks NSO and ISO splits automatically across the option pool. The distinction matters because ISOs have a $100,000 annual vesting limit per employee. Options vesting above that threshold are automatically reclassified as NSOs with different tax treatment. Cake applies this tracking without requiring a separate compliance report or manual calculation.

Yes. Cake includes built-in 83(b) reminders for founders and early equity holders. The 83(b) election must be filed within 30 days of receiving restricted stock or early-exercised options. Missing this window is an expensive tax consequence that cannot be reversed. Cake flags the deadline automatically so it is not missed.

Cake's 409A includes expert consultation, methodology documentation, and a 3-business-day turnaround at $1,500 per valuation. The methodology documentation is not standard practice with every provider. It means you can review and defend how the fair market value was reached, rather than relying on a number without explanation.

A 409A is valid for 12 months from the date it was completed. After 12 months, you need a new valuation before issuing additional stock options. A new 409A is also required after a material event, such as closing a new financing round, regardless of when the last valuation was completed.

Yes. Cake's 409A follows IRS safe harbor methodology, performed by qualified independent practitioners. A safe harbor valuation shifts the burden of proof to the IRS in the event of a dispute. It is the standard approach used by companies planning to issue stock options and the one your attorneys and auditors will expect to see.

Yes. A 409A is required before issuing stock options to employees. Without a current 409A, you cannot set a compliant strike price. Options issued without a valid 409A may expose the recipient to adverse tax treatment under IRS Section 409A, including immediate income recognition, a 20% penalty tax, and interest charges.

Cake's 409A costs $1,500 and is completed in 3 business days. The price includes expert consultation and full methodology documentation. Two 409As per year are included on the Team plan. One-off 409As are $1,500 each. Traditional standalone providers typically charge $3,000 or more for the same assessment.

Your 409A history migrates as part of the standard migration process. Cake's team reconciles your historical 409A records alongside your cap table data — prior valuation dates, methodologies, and effective periods. Having the historical record in Cake also makes it straightforward to initiate future 409A updates directly from the same platform.