How much does a 409A valuation cost?

  • Finance

A 409A valuation typically costs between $2,000 and $10,000, depending on a company’s stage, complexity, and capitalization structure. Early-stage startups with simple equity structures are usually at the lower end, while later-stage or venture-backed companies with multiple share classes, strong revenue growth, or international operations tend to pay more. Pricing is also influenced by the valuation provider’s reputation, turnaround time, and level of audit support. Some providers offer subscription models that include updates after financing events. While low-cost options exist, companies should prioritize defensibility and compliance to avoid IRS penalties and employee tax issues?

R&D Offer Quiz

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Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.