# Late-Stage Companies: Preparing for major milestones

## What do I need to prepare for key life cycle moments?

As a new administrator in a late-stage company, a main focus will be on preparing for major milestones. This guide will walk you through Carta essentials, ensuring you’re fully equipped to navigate these pivotal transitions with confidence.

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## Strategic cap table management

Strategic cap table management can be complex, but Carta makes it simple. Here’s how to get started:

[**Updating the cap table:**](https://support.carta.com/kb/guide/en/how-to-manage-share-classes-and-authorized-counts-JEcEMJ4umj/Steps/3768682) After closing a financing round, merging with another entity, or recapitalizing, ensure your share classes are up-to-date and any changes to your equity incentive plan are reflected

- [Add](https://support.carta.com/kb/guide/en/how-to-manage-share-classes-and-authorized-counts-JEcEMJ4umj/Steps/3768682,3724533) or [amend](https://support.carta.com/kb/guide/en/how-to-manage-share-classes-and-authorized-counts-JEcEMJ4umj/Steps/3768682,3768669) share classes
- [Add](https://support.carta.com/kb/guide/en/how-to-manage-your-companys-equity-plans-hPn3OPIflt/Steps/3772660,3772602) or [manage](https://support.carta.com/kb/guide/en/how-to-manage-your-companys-equity-plans-hPn3OPIflt/Steps/3772660) your equity incentive plan

[**Securities templates:**](https://support.carta.com/kb/guide/en/how-to-manage-securities-templates-j5V3TaHPWC/Steps/3724713) Manage or add pre-defined sets of information to streamline the equity issuance process such as document sets, vesting schedules, performance conditions, legends and more

[**Managing securities:**](https://support.carta.com/kb/guide/en/guide-to-managing-securities-on-carta-ZjLgqEvKdR/Steps/3724613) Manage or update your securities **individually** or **in bulk**:
- [Draft new securities](https://support.carta.com/kb/guide/en/how-to-draft-and-issue-option-grants-2b6aMIrB9u/Steps/3759575)
- [Modify existing security details](https://support.carta.com/kb/guide/en/guide-to-managing-securities-on-carta-ZjLgqEvKdR/Steps/3724613,3776096)
- Manage [transfers](https://support.carta.com/kb/guide/en/how-to-transfer-securities-LyRvJeJaIF/Steps/3748192) or [repurchases](https://support.carta.com/kb/guide/en/how-to-repurchase-shares-and-select-transaction-reasons-NPIT6kBMrK/Steps/3724494)

[**Repricing options:**](https://support.carta.com/kb/guide/en/how-to-reflect-an-option-grant-repricing-dECV67LFtB/Steps/3724417) Simplify the repricing process by requesting your repricing directly in-app
- Our team will **help you model the repricing** **before it’s reflected** on your cap table

[**701 Disclosures:**](https://support.carta.com/kb/guide/en/how-to-send-rule-701-disclosures-QeBXHOHf8N/Steps/3724516) Securely send 701 disclosures or other documentation that needs to be safely distributed to your stakeholders

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## Managing cap table health

Maintaining the integrity of your cap table is essential for any stage. Key components to maintaining your cap table health on Carta include:

- [**Managing stakeholders:**](https://support.carta.com/kb/guide/en/how-to-manage-stakeholders-on-carta-NuzsH3PYbK/Steps/3757435) Maintain stakeholder details such as terminations, properties or resolve discrepancies  **individually** or **in bulk**
  - [Issue equity](https://support.carta.com/kb/guide/en/how-to-manage-stakeholders-on-carta-NuzsH3PYbK/Steps/3757435,3757436) through the ledger
  - [Terminations](https://support.carta.com/kb/guide/en/how-to-manage-stakeholders-on-carta-NuzsH3PYbK/Steps/3757435,3757460)
  - [Edit stakeholder details](https://support.carta.com/kb/guide/en/how-to-manage-stakeholders-on-carta-NuzsH3PYbK/Steps/3757435,3758510) or [properties](https://support.carta.com/kb/guide/en/how-to-manage-stakeholders-on-carta-NuzsH3PYbK/Steps/3757435,3758507)
- [**Account Health Checks Dashboard:**](https://support.carta.com/kb/guide/en/how-to-use-the-account-health-checks-dashboard-mD52JHI1SF/Steps/3711644) Understand and take action to fix potential data inconsistencies on Carta

Reviewing reported issues

Click for sound

- [**Resolving reported issues:**](https://support.carta.com/kb/guide/en/how-to-resolve-reported-issues-TLtX5SBcmH/Steps/3802754) Reported issues from your stakeholders
  - When issues are reported, your designated _Stakeholder contact_ will receive an email notification with the stakeholder’s message
  - **_Full Access_** and **_Company Editors_** can view reported issues.
> Only the designated _Stakeholder contact_ can **resolve** reported issues

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## Essential reporting

Carta provides essential reports that are updated in real-time based on cap table activity.

Exporting company reports

Click for sound

[Export the reports](https://support.carta.com/s/article/export-reports#find-report) you need and find them in your _Downloads_ tab for quick access. Recommended reports for late-stage companies:
- **Equity plan:** A ledger of all securities granted from the equity plan including reserved and outstanding share counts as well as canceled and returned awards and more
- **Exercised and settled:** A ledger of all option grant exercises, RSU settlements and secondary transactions from plan
- **Certification transaction:** Detailed transaction history of each certificate
- **Audit Report:** A full audit report of every action taken in your account
- **Cap table export:** Capitalization table grouped by organization, individual stakeholder, or security type

> We recommend checking the settings ‘Detailed’ and ‘Securities ledger by type and class’ when exporting. This will give you the most detailed view of your cap table.

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## Audit readiness

Whether you are in need of a refreshed 409a valuation or stock-based compensation reporting, Carta has you covered.

### [**409a Valuation Services**](https://support.carta.com/kb/guide/en/how-to-request-a-409a-valuation-hMxyj7SPDI/Steps/3724495)
**WHY USE CARTA**: Carta’s valuation services are **integral to audit readiness**
- Leading 409A valuation provider, trusted with over 15,000+ 409A valuations each year
- Audit-defensible services ensure your valuation stands up in IRS and SEC reviews
- **HOW IT WORKS:** [Complete your request](https://support.carta.com/kb/guide/en/how-to-request-a-409a-valuation-hMxyj7SPDI/Steps/3724495,3786617) in-app

### [**Advanced Financial Reporting**](https://support.carta.com/kb/guide/en/how-to-run-reports-in-the-financial-reporting-tool-AVlGvPtIDH/Steps/3845369,3871694,3869275,3779232)
- **WHY USE CARTA:** Carta provides **detailed financial reports in US GAAP** **or** **IFRS** accounting standards, ensuring compliance with ASC 718
  - **Reports are designed to be audit-ready**, reducing the risk of discrepancies
  - **Automated calculations** minimize manual errors
- **HOW IT WORKS:** Create one or multiple scenarios by choosing your accounting standard, methodologies, financial reporting values, volatility and forfeiture rates
  - **Generate reports** **on a monthly, quarterly, annual or ad-hoc basis**
  - **Easily export** your stock-based compensation reports and minimum disclosure statements

### [**World Class Support**](https://app.carta.com/profiles/update/?support=true)
- **Valuation Support:** Our dedicated valuation experts can be reached at [val-operations@carta.com](mailto:val-operations@carta.com) or (650) 457-6657 before you start, during the request, or after you’ve received your draft
- **Financial Reporting Support:** Our dedicated financial reporting team can be reached at [718@carta.com](mailto:718@carta.com) or (650) 669-8381
- **Audit Support:** Access to a team of dedicated analysts who can answer questions and offer audit support related to your valuations and financial reporting

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## Custom liquidity solutions

Run tender offers easily through an integrated liquidity solution that's connected to your cap table.

**Advantages of using Carta** for your custom liquidity solutions:
- **Streamlined process:** Manage these transactions efficiently with a comprehensive platform
- **Expert guidance:** Our Liquidity Team provides support throughout the process, ensuring you navigate the complexities with confidence
- **Compliance and security:** Carta ensures compliance with regulations and provides a secure environment for handling sensitive financial data

> Reach out to your Account Specialist or Customer Success Manager at any time if you would like to learn more

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## Managing tax impact

Approach year-end with ease by utilizing Carta to manage tax withholdings, generate necessary tax forms and much more.

[**Employee tax withholdings:**](https://support.carta.com/kb/guide/en/how-to-manage-employee-tax-withholdings-X9zjxlpMDU/Steps/3724478) Carta can help companies estimate tax withholding amounts. To ensure accuracy, keep accurate records of stakeholder addresses, payroll information and relationship histories
- [Integrating your HRIS system](https://support.carta.com/kb/guide/en/how-to-manage-employee-tax-withholdings-X9zjxlpMDU/Steps/3724478,3798811) can streamline this effort

[**1099-B:**](https://support.carta.com/kb/guide/en/where-do-i-find-my-tax-information-mQtF8tGQ4G/Steps/3742322) Companies who run a secondary liquidity transaction on the Carta can elect to issue 1099-B Supplemental Statements to qualifying employees and others who sold certificates originating from an option exercise

[**Form 3921:**](https://support.carta.com/kb/guide/en/how-to-generate-and-deliver-form-3921-vpon6CSkT9/Steps/3776173) For employees who exercised incentive stock options (ISOs)
- **Generate** your Form 3921’s for **any tax year**
- [Deliver Copy B](https://support.carta.com/kb/guide/en/how-to-generate-and-deliver-form-3921-vpon6CSkT9/Steps/3776173,3776146) **directly to your employee’s** Carta account
- **Streamline the filing process** by generating Copy A to upload directly to the IRS website

[**Qualified Small Business Stock (QSBS):**](https://support.carta.com/kb/guide/en/how-to-benefit-from-qsbs-tax-exemptions-wmlBkgIr2H/Steps/3724558) Get up-to-date or historical attestation letters and ongoing expert QSBS guidance, so you and your stakeholders can save on taxes

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## IPO readiness

When you’re ready to transition your company to the public sector, our dedicated transition teams will assist with the process to minimize management overhead.

**Carta’s IPO Advisory**
Cap table cleanup, personalized guidance, shareholder communications, and data migration
- **Experienced Advisors:** Introductions, advice surrounding which Transfer Agent and plan admin is the best fit, customized project plans and much more
- **Data Integrity:** Lean on us to ensure your cap table is up-to-date, accurate, and all corporate actions have been executed properly, avoiding costly and time-consuming data transfers before listing day
- **Communication and Education:** Easily communicate and enable all stakeholders on what this means for them
- **Flexibility:** Exit timelines regularly shift, so give your team flexibility to adjust, while maintaining the best-in-class private company solution that your stakeholders know and love

**Morgan Stanley <> Carta Collaboration**
Working together to bring best-in-class equity management to all companies across the private and public markets
- **Secure and Scalable:** Secure, compliant, and scalable to meet your needs as your company grows
- **Trusted by Thousands:** More than 40,000 companies rely on Carta for their equity management needs. Morgan Stanley at Work is a leader in public company equity solutions, serving companies of all sizes and industries
- **Transition with Ease:** Lean on Carta and Morgan Stanley dedicated transition teams to help quarterback the migration

> Reach out to your Account Specialist or Customer Success Manager at any time if you would like to learn more