Discussion about "Equity is the currency of early stage businesses - socalTech.com"

It is a useful article for start-ups. However, in California the securities filing fee will be at least $201 (California charges $200 + a percentage of the value of the securities offered) and more likely about $1,000.

I'm glad he noted the need to consider Sec. 409A of the federal tax code (and California has its parallel). I've worked with clients over the past couple years to undertake the voluntary correction that's possible when the 409A valuation is overlooked and the valuation is questionable. Happily, it's not a difficult process if correction occurs within the first year without any complicating exercises.

Thanks Tahir

409A is big issue that is often overlooked by smaller private companies.  If ECE member search on the term "409A" on within this group they will find many articles discussing pitfalls and some early solutions.

If you are at a company that has not been taking care of your 409A issues, I think speaking soon to someone like Tahir is a very very good idea.