4 months ago3/3/2026

Financial Reporting: Milestone Support with Performance Conditions

Financial Reporting is improving the vesting schedule types supported and updating the UI so it's easier than ever to set it up and generate reports.

What's new?

Milestone award support (Dec 2024)

Milestones are a type of vesting schedule that can be set up at the grant level and that are vested by admins upon holders accomplishing certain achievements. Milestones can be used as a catch all alternative where a performance condition will not suffice. See this support article for information of what vesting schedule types fall under 'milestone vesting' at Carta.

Milestone awards that were granted historically will true up on the next report run in Financial Reporting. Any expense that would have been attached to these historically will be booked in the most recently run period.

NEW: Mixed-vesting milestone support

We've added support for double-trigger milestone awards, where vesting requires both a milestone condition and a performance condition (non-market or event-based) to be met. Previously, milestone tranches with performance conditions were blocked and produced an error.

Contact 718@carta.com if you would like to discuss how to treat these awards.

Anything else I need to know?

If you have any questions or want to talk to an expert about these new changes, reach out to 718@carta.com.

Denny Lee

4 months ago3/2/2026

New: Biometric KYC Verification

We’re excited to announce the release of Biometric KYC Verification, making it significantly easier and faster for LPs to complete their Know Your Customer (KYC) tasks on Carta.

Why is this valuable?

Move from setup to capital deployment faster. Traditional KYC is a manual hurdle that creates friction for LPs and delays onboarding. This update replaces legacy data entry with a biometric-first workflow—eliminating administrative overhead while ensuring the highest level of data integrity and compliance.

What’s new?

• Instant identity verification: Individual LPs can now verify their identity by scanning a government ID using their desktop or mobile phone—replacing a manual process with a streamlined flow completed in just minutes.
• Simplified data requirements: For US Investor KYC Due Diligence, we have removed redundant fields to further simplify the process for LPs
• Mobile-first flexibility: Investors can instantly transition from desktop to mobile via QR code to capture high-resolution ID photos, ensuring a higher success rate and faster approvals.

This is available for all Individual entity types across all Investor Services KYC Due Diligence products in all jurisdictions.

How do I use it?

1. Enter KYC: Start the KYC process either within the Subscription Documents or Identity Verification task.
2. Choose a method: Upload a photo of a government ID or scan the provided QR code to take a photo of the ID.
3. Submit: Complete the task in a fraction of the time compared to legacy manual forms.

Anything else I need to know?

• Existing tasks: LPs who have already started a KYC task will continue with the current form to ensure their progress is not interrupted.
• Manual fallback: If an ID cannot be verified automatically, users will be prompted to try again or can choose to fill out the information manually to ensure no one gets stuck.

Samantha Widman

5 months ago2/15/2026

Introducing Australia’s First Integrated ESS Compliance Suite

What’s new?

Australian companies can now manage their entire equity compensation lifecycle - from issuing grants to generatingreportsdirectly within Carta that you may file with the ATO. This release introduces ESS stock options that replace generic "international" securities, ensuring your cap table reflects real Australian equity structures.

What’s important about this change?

Historically, Australian startups have been forced to juggle multiple platforms, manual spreadsheets, and expensive third-party filers to manage Employee Share Schemes (ESS). This manual process often led to weeks of reconciliation and compliance uncertainty.

How this makes life better:

• For Founders: You can now issue tax-advantaged options (including startup concessions and non-concessional types) using the same familiar workflows on the platform.
• For Employees: Your team receives clear, pre-filled tax statements directly from Carta, making it easier for them to understand their ownership and file their personal tax returns.
• For Accountants & Tax Advisors: Instead of hunting for data, you can be invited as an admin to access real-time, ATO-ready reports, shifting your focus from data entry to strategic advice.

How does it work?

The entire filing workflow is now consolidated into a single source of truth.

1. Issue & Track: Issue ESS options directly from the grants flow. Every transaction - grants, exercises, and vesting - automatically syncs to your cap table.
2. Generate Reports: With one click, generate ATO-format ESS Annual Reports (Excel/CSV) that include all mandatory fields and automated tax calculations for you to submit to ATO.
3. Distribute Statements: Automatically generate and send ATO format summary statements to your employees.
4. Collaborate: Invite your external accountant or tax advisor to access the data directly, reducing back-and-forth and lowering accounting fees.

How do I learn more?

For more information on how it works, check out this guide.

• Existing Customers: Our team will reach out directly via email to assist with migrating your current securities to ESS types.
• New to ESS? Check your plan - ESS statement and ATO support features are included in Grow & Scale plans.
• Need an upgrade? If you are on a Build plan, reach out to us here.

Ashlee Neo

9 months ago9/29/2025

KYC AML Dashboard

What’s new?

Carta’s new KYC AML Dashboard provides greater visibility and control of your investor KYC (Know Your Customer) checks. It allows you to easily track requests and keep on top of KYC progress with a visual summary and details for each LP. Here’s how it works:

1. Initiate and track progress

• Invite LPs to complete KYC, including prospective LPs who are not on your Partners Dashboard, and standalone KYC checks outside of Fund Closings
• Remind investors to submit their KYC information and keep things moving
• Monitor status updates and key dates, including when KYC was last updated for an investor, and the results of daily watchlist screenings

2. Consolidate KYC tasks across entities

• Manage results for investors in multiple entities
• See investor KYC checks across jurisdictions in one place
• Ensure regulations are followed with data collection based on the entity’s country of domicile

3. Download results

• Export summary reports for an overview of investor KYC results across all entities
• Export Customer Due Diligence (CDD) reports for individual investor KYC results including risk scores that explain how a verdict was reached

What’s important about this change?

Traditional KYC providers and methods offer GPs very limited visibility into the process. GPs often don’t know how a KYC check is progressing or when it will be complete, and aren’t told why a certain verdict was reached. The KYC AML Dashboard transforms the experience of managing KYC for a fund, whether you’re onboarding LPs for the first-time or running periodic reviews.

How does it work?

To learn more, browse our support articles about Carta’s KYC services or read our guide to KYC compliance.

See the product in action in this interactive demo:

KYC at Carta

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KYC AML Dashboard

Learn how to stay on top of your KYC/AML program throughout your fund's lifecycle with Carta

Get Started

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N.B. Carta’s KYC solution supports, but does not constitute, an AML program.

Samantha Widman

a year ago3/25/2025

E-signature witnessing for LP subscription documents

LPs can now nominate a witness to provide a digital witness signature to their subscription documents during closings.

What’s new?

Certain jurisdictions legally require a witness for subscription documents. A witness is a third-party individual who observes someone signing a document and provides a signature themselves to confirm that the original signature is genuine.

Previously, signature witnessing was a clunky process which involved downloading and signing physical documents. Now, signatures can be securely witnessed online in a few clicks.

Who is it available for?

Digital witnessing is available to fund administration customers and their LPs when closing a fund domiciled in the UK, Jersey, Singapore or the Cayman Islands.

How do I use it?

As an LP:

Upon signing the subscription documents, you will be prompted to add a witness and enter their details to complete signing. The witness will then receive an email. You can nudge the witness by resending the signature request email.

As a witness:

You will receive an email informing you of the witness signature request.

Follow the link in the email to witness the signature on the LP’s subscription documents.

After you have signed, you’ll receive an email confirming that the process is complete.

As a GP:

You’ll be able to track the progress of signatories within Carta.

When all signatures are complete, you can countersign the subscription documents.

a year ago1/28/2025

Recent releases for QSBS eligible companies and their shareholders

We are continuing to enhance the experience for QSBS-eligible companies and their shareholders. Recently, we have introduced the following features:

1. View previously sold QSBS eligible shares

Shareholders and admins can now see previously sold shares that were QSBS eligible. Users can view this information on Carta directly, as well as the QSBS PDF statement available for download by shareholders.

Sold shares appear for investors and individuals in their portfolio:

Shareholders can also view the sold shares information on the QSBS PDF statement:

Shareholders can also view the sold shares information on the QSBS PDF statement:

2. QSBS columns added to the Investment dashboard export

Investors with holdings in QSBS eligible companies can now see the QSBS status, and if applicable, number of QSBS eligible shares the hold in the Investment dashboard export.

3. Financing history now included QSBS Attestation letter's to Company admins

Our QSB Attestation letter to companies now includes a section detailing the financing history of the company. This information impacts the 'aggregate gross assets' test our team preforms during the analysis.

If you have any questions reach out to your assigned Carta account team or qsbs@carta.com to learn more!

Jordan Agnew

a year ago12/30/2024

Financial Reporting milestone support and a new revamped UI

Financial Reporting is improving the vesting schedule types supported and updating the UI so it's easier than ever to set it up and generate reports.

What's new?

New milestone award support

Milestone awards that were granted historically will true up on the next report run in Financial Reporting. Any expense that would have been attached to these historically will be booked in the most recently run period. Contact 718@carta.com if you would like to discuss how to treat these awards.

Milestone awards with performance conditions are not supported at this point and will show at the errors tab of the disclosure report.

New revamped UI

1. New landing page (for new users)

2. Reduced workflow for setup by applying sensible defaults so users can generate reports with 1 click (for new users only).

3. Dedicated page showing the latest report, so users can easily access it and download again (for all users).

4. New manage settings button (for all users).

5. New report button now located in the report workflow modal (for all users).

Who is this available for?

Nearly all Financial Reporting customers have been updated. If you do not see this new view, please contact 718@carta.com for options on how to get this view enabled.

Anything else I need to know?

If you have any questions or want to talk to an expert about these new changes, reach out to 718@carta.com.

Eduardo Bacil Monteiro Dias

2 years ago6/6/2024

Standard Financial Reporting

Carta’s Financial Reporting  tools automatically generate the expense and minimum disclosure reports that auditors need so that you can easily comply with US GAAP and IFRS 2 accounting standards.

Early-stage companies now have a Financial Reporting product designed just for them. Standard Financial Reporting includes automatic expense tracking for equity spending and an audit package with all the supporting evidence and documentation auditors need for stock-based compensation (SBC) expense reporting.

Features included:

• Automatic 409A valuations data ingestion

• FMVs and Peers

• Annual reporting

• Audit package including SBC expense report, Minimum Disclosure report, and an audit guide detailing the assumptions we make and formulas we use

• Premier audit support

• Stock split support

Who is this available for?

Standard Financial Reporting is available to all Carta cap table customers, but specifically designed for early-stage companies preparing for their first few audits

Main Value Proposition

Automatically track your equity spending with Carta’s Standard Financial Reporting. Key benefits include:

1. Accurate, automated expense tracking: Tracks stock-based compensation expense, ensuring all cap table transactions are accounted for.
2. Time saved: Get your stock-based compensation (SBC) report, minimum disclosure report, and audit guide in 5-10 minutes, saving 1-2 weeks of manual calculations.
3. Compliance: Ensures compliance with the Financial Accounting Standards Board (FASB) requirements for booking SBC expense upon first issuance.
4. Historical expense calculation: Provides a one-time adjustment for historical expenses in your financial books.
5. Simplified auditing: Download an audit package with all necessary documentation, ready to send to your auditor.

In just a few clicks, Carta’s tool manages your stock-based compensation expenses, making your audit process seamless and efficient.

How do I use it?

• Go to Compliance > Financial Reporting
• Before getting started, make sure your cap table is up-to-date with all historical transactions including issuances, terminations, and cancellations.
• Click “Get started” and enter your financial statement end date. Then click “Generate expense.”
• Wait a few minutes while we do the complex accounting for you.
• Once expense is done generating, book your inception expense as a one-time adjustment in your financial books.
• Book your first FY expense in your financial book.
• When it’s time for your audit, download your audit package and send it to your auditor.
• If there have been any backdated adjustments made to your cap table, you can recalculate your expense before downloading your audit package for the most updated value.

Anything else I need to know?

All questions can be answered through our Financial Reporting support team, contact them via email 718@carta.com

Samantha Widman

2 years ago6/6/2024

Financial Reporting Vesting & Option Service Integration

Financial Reporting is making an improvement to the way we pull in cap table data, achieving data consistency with the cap table products for vesting schedule tranche values.

What's new?

Previously, Financial Reporting used our own First-In First-Out (FIFO) allocation method to assign exercised quantities to ISO/NSO security type tranches. This method did not always match the cap table, as the logic slightly differed. In order to provide consistent data between cap table products, such as equity reporting, equity awards ledger, equity award details, and Financial Reporting, the Securities team created API services, specifically Vesting and Options for award and tranche level quantities. With Financial Reporting’s integration of the Vesting and Options API service, the tranche values displayed in Financial Reporting reports will be improved to match other Carta products, achieving data consistency.

Who is this available for?

All Financial Reporting customers will benefit from this new method Financial Reporting will be using to achieve data consistency with cap table products and equity reporting. More specifically, companies with ISO/NSO security types will have matching tranche quantity allocations with their cap table!

Main Value Proposition

Fully rely on Financial Reporting for your equity roll forwards! With a few clicks, Financial Reporting will provide accurate equity roll forwards and stock-based compensation expense for your financial statements and audits. Carta’s products talk to one another, which means you can easily rely on Financial Reporting to have accurate tranche quantities that match our other products.

How do I use it

No action required on the customer side. Customers will just continue to generate their financial reporting periods and the reports will correct themselves without disrupting the opening and closing balance of prior reporting periods.

Anything else I need to know?

If you have any questions or want to talk to an expert about this new change, reach out to 718@carta.com

Samantha Widman

2 years ago8/30/2023

Automate your Rule 701 Compliance on Carta

Sending 701 Disclosures is now seamlessly integrated into the issuance process on Carta. After drafting shares, a company can quickly run a report to check whether a 701 disclosure is required. If they are, they can upload and securely send to both new and existing stakeholders without leaving the app.

What is a 701 Disclosure? Am I required to send them?

A 701 Disclosure is a notice you may need to send to employees and investors if your company wants to sell or issue more than $10 million in securities within a 12-month period. This includes employees and other service providers who will be receiving equity in your company. They must be given the chance to review the disclosures before the purchase decision (or acceptance of an equity award) is made. You can read more about Rule 701 and how it applies to your company here.

Companies can use Carta’s compliance features to check if they are required to send 701 Disclosures before issuing securities. Go to Essentials > Run reports to find the 701 report to check whether you meet this requirement.

Who is this available for?

Companies in Scale. If you would like to upgrade your subscription to include Rule 701 Compliance, talk to your Account Manager or schedule a demo.

How does it work?

1. After drafting RSUs, click Add RSUs to the ledger.

2. Next, you will be prompted to either run a 701 report or begin preparing the 701 Disclosure without running a report. Running a 701 report will let you know if you are required to send 701 disclosures before issuing these RSUs.

3. NOTE: Clicking Prepare 701 disclosure does not trigger an email to your recipients or company signatories.

4. After clicking Prepare 701 disclosure, you will be taken to the Communication Center,  where you can prepare a message and attach a disclosure PDF. Click Next: Choose recipients or Click Save Draft to save this draft for another time.

5. If you save your draft, Carta will add a reminder to the top RSU ledger. Click Draft Rule 701 disclosure on your RSU ledger to continue working on this disclosure.

6. Carta automatically includes all  RSU recipients of your drafted RSUs. Additional recipients can be selected from the table on the left, if applicable. To proceed, click Next.

7. Review the message and recipient list. If everything looks good, click Send communication.

8. Recipients will be able to access the disclosure from their Carta inbox as well as via email.

9. Once all recipients have received this disclosure, Carta automatically sends RSUs to your company signatories.

10. As soon as signatories sign the RSUs, holders will receive them.

What will recipients see?

Once a 701 Disclosure has been sent, recipients will receive the following email. This communication will be sent to the stakeholder’s Contact Email on file.

How can I trust that these disclosures are sent securely?

All disclosures will be watermarked individually. These documents will be shared with recipients directly in Carta, not over email. Your recipients will be blocked from downloading the document, and any admins on your account will see who opened the disclosure and when. Admins will also have access to analytics to see which pages of the disclosure each recipient spent the most time on.

Can I resend a 701 Disclosure to a recipient?

You cannot resend a 701 Disclosure in the app. If you need to resend a 701 Disclosure for any reason, contact Carta’s support team for assistance.

Alana Lindall

2 years ago8/9/2023

Automatically Expense Awards with Event-Based Performance Conditions

What’s new?

Starting August 10, 2023, companies that issue NSOs and RSUs with event-based performance conditions attached to their vesting schedules will now be able to automatically calculate and expense these awards in their SBC Expense, Disclosure, and Dilution reports. Previously, companies that gave out awards with event-based performance conditions calculated their SBC Expense, Disclosure, and Dilution values manually outside of Carta.

Who is this available for?

All Carta Cap Table users with Financial Reporting in their subscription. If you do not yet have Financial Reporting in your subscription, please talk to your Account Manager or email 718@carta.com.

How does it work?

• Log in to Carta, and navigate to Compliance & Tax > Financial Reporting.
• Create a new report. The date range for the report should include the date when a performance award was granted.
• Once an award has met all performance conditions, there will be a true-up of the expense and any values will be allocated accurately as per FASB US GAAP guidance.
• If the performance conditions have not been met, the expense will be reported as 0 per US GAAP guidance.

What’s an event-based performance condition?

If an award has a performance condition, it means that the award has a vesting condition that is subject to performance-based criteria. An event-based performance condition is one in which vesting is contingent on a liquidity event such as an IPO.  Carta’s cap table includes support for NSO and RSU awards with event-based performance conditions. Now, companies that issue NSOs or RSUs with event-based performance conditions can automatically expense these options in their financial reports.

How does Carta calculate the fair value assumptions?

Companies can choose to use either Carta’s default fair value assumption or to create a customized one. Carta’s default fair values assumption is calculated with the Black Scholes pricing model, using your company’s Fair Reporting Value at an award’s grant date.

Can I create reports using both US GAAP and IFRS scenarios?

Not at this time. Companies can only expense awards with event-based performance conditions in US GAAP.

Can I attach event-based performance conditions to a specific vest date?

Yes. As of September 14, 2023, companies that issue NSOs and RSUs with event-based performance conditions attached to a specific vesting date can be expensed using our Financial Reporting tool.

Where do I go if I have more questions about financial reporting?

If you have more questions about our Financial Reporting product, please contact 718@carta.com.

Alana Lindall

3 years ago6/23/2023

Tax Jurisdiction Model: Local Jurisdiction Withholding Improvements

What’s new?

Legal Administrators can now group multiple cities under a single local jurisdiction for tax withholding purposes.

Why is this an improvement?

Issuers now have greater flexibility in capturing jurisdictions where their participants pay taxes, particularly for county-level taxes or jurisdictions that are not specific to countries, states/provinces, or cities.

How does it work?

Navigate to Carta’s Tax jurisdiction and rates table by following Compliance & Tax -Tax Rules-Tax jurisdictions and rates.

Add a jurisdiction below the state or province level and select Multi-Regional Tax Jurisdiction. Enter all of the cities that belong to that jurisdiction.

The jurisdiction is then displayed as Multi-Regional. Any tax rate or rule set for the jurisdiction will apply to all stakeholders with tax addresses containing any of its included cities and will be used to calculate tax withholding for applicable transactions.

Bryan Wells

3 years ago6/21/2023

Separate reports for Fair Market Value (FMV) and Financial Reporting Value (FRV)

What's new?

Beginning on June 21, customers with both Carta 409A and Financial Reporting in their subscription will begin receiving two separate, audit-defensible reports: one with the Fair Market Value (FMV) used for tax purposes, and one with the Financial Reporting Value (FRV) used for accounting purposes.

Delivering these reports separately will more closely align with a changing regulatory environment in which tax guidelines under 409A and accounting standards under ASC 718 diverge.

Historically, Carta has only delivered a single report that values our customers' common stock under section 409A of the tax code. This singular report would double as a valuation used for both tax and accounting purposes, which introduced challenges for customers going through audits - companies are incentivized to keep their FMV low to keep options attractive for employees, while auditors may push companies to increase the Fair Value of stock when calculating stock-based compensation expense.

Disambiguating these two concepts allows our customers to work more flexibly with their auditors while still keeping options and other equity awards attractive as incentives for hiring and retaining talent.

What do I need to do?

If you're a customer with both Carta 409A and Financial Reporting in your subscription, you'll receive two reports the next time you request a 409A valuation from Carta: one with the Fair Market Value (FMV), and one with the Financial Reporting Value (FRV).

The FMV can be used as normal: pricing options, helping employees estimate their tax burden when exercising, Form 3921 filings, etc. The FRV can be used in Carta's Financial Reporting product to calculate the expense associated with stock-based compensation. Customers can work with their auditors to either directly use the provided FRV or adjust it from within Carta's Financial Reporting product as necessary.

For customers with access to both Carta 409A and Financial Reporting in your subscription, you’ll see an additional card for FRV at the top of the Valuations homepage in Carta (Compliance & Tax > 409A Valuations) once you receive and accept a new valuation report from Carta:

You'll also see an extra column in the table at the bottom of the Valuations homepage which shows historical FRVs side-by-side with historical FMVs:

And in Financial Reporting, you'll also see text changes when configuring a scenario:

How do I learn more or get help?

We've created a few help articles with detailed information about FRV and how this value differs from FMV and appears in Carta:

• Separate Reports for Fair Market Value and Financial Reporting Value
• 409A and ASC 718 Compliance: Carta’s Financial Reporting Value (FRV)
• Financial Reporting (V3): Carta’s Financial Reporting Value (FRV)

If you've received your FRV report and have further questions, feel free to reach out to val-operations@carta.com - we'd be happy to help.

Stephanie Wittrock

3 years ago6/1/2023

Introducing Carta's New Navigation Experience for Companies

We’ve made some improvements

Beginning in May 2023, we are launching a new navigation experience - making it easier than ever to navigate your cap table, create and issue new securities, and manage relations with your stakeholders.

We are testing this experience with a select list of companies. Companies in this test will now navigate Carta’s equity management platform from the left-hand side. We are using this test to iterate on any improvements that need to be made and hope to roll out to 100% of new and existing companies by Summer 2023.

The new menu can also be collapsed for an optimized viewing experience by clicking the menu icon to the right of the Filter text box once you’ve landed in the right spot.

Finding what you need just got easier

The new navigation will make it easier for you to find what you’re looking for and complete critical tasks, with menu categories that are more intuitive and organized according to the type of task that needs to be completed within Carta.

Terminology that just makes sense

We have also updated some of the terminology that appears throughout the Carta platform to clarify specific tasks and workflows. The changes that we’ve made are outlined in the table below.

FAQs

Why is Carta making this change?

Carta offers a wide range of products and services, and users sometimes get  lost as they look through menu items in an effort to find the workflow or platform page they need to access. We understand that time is money, and the less time you spend locating the resources you need frees up more time for you to spend growing and managing your company. The new left-side menu enables users to have an immediate comprehensive view of Carta’s functionality with clearer verbiage, menu filtering, and collapsible dropdowns.

Can I revert back to the old navigation experience?

No. Our research has shown that our new navigation menu is not only more intuitive for users, but also faster. Beginning in May 2023, Carta is fully migrating away from the top navigation menu. We plan to be rolled out to 100% of companies by July 2023.

How do I use the new navigation experience to find what I’m looking for?

The new navigation experience includes a filter to assist you in finding what you’re looking for. The menu will responsively pare down as characters are entered in the text box.

Additionally, left-side navigation enables you to expand and collapse multiple dropdowns at the same time, allowing for a more comprehensive overview of Carta’s functionality at a glance.

Did Carta remove any features?

No. While the new menu may look more compact than in our current experience, all of the features that you have come to rely on are included in the new navigation. The goal of this initiative is not to change the functionality of Carta’s cap table, but rather, to make that functionality easier for you to find.

Alana Lindall

4 years ago1/24/2022

Carta Web now has Section 6039: Form 3922 tax form generation

What's new?

Carta Web now supports the generation of Form 3922 for Employee Stock Purchase Plans in the Company Administrator view. Companies that would normally have access to the Compliance tab, can now request access to Section 6039 from their Customer Success Managers. Form 3922 forms are due to stakeholder portfolios by January 31, 2022. By enabling this functionality in Carta Web, administrators are now in control of the Form 3922 generation and distribution, similar to Form 3921 for Incentive Stock Option Exercises.

NOTE: This feature can be enabled upon request from companies that have an Employee Stock Purchase Plan.

From the IRS:

Corporations file this form (3922) for each transfer of the legal title of a share of stock acquired by the employee pursuant to the employee's exercise of an option granted under an employee stock purchase plan and described in section 423(c) (where the exercise price is less than 100% of the value of the stock on the date of grant, or is not fixed or determinable on the date of grant). How to Use

1. To generate Form 3922, navigate to Compliance > Section 6039.

NOTE: TCC is not required to generate Form 3922 Copy B for employees.

2. Click Generate.

3. Select the Effective Year of the report.

4. Review any missing information, check off the box to confirm company data, then click Next: add contact info. If any information is missing, complete the information, then return to this stage.

• If Company tax data is not complete:

1. Navigate to Company > Settings.
2. Click into the Profile tab.
3. Enter Tax ID, TCC (required to generate Copy A, but not required for Copy B) and address.

• If Stakeholder tax details are not complete, update missing data under the Stakeholder details tab of the same Form 3922 page

1. The names, addresses, and SSNs can be edited individually by clicking Edit to the right of the stakeholder’s row.
2. The stakeholder details can also be updated in bulk via Stakeholders > All stakeholders page. Review these instructions to bulk update stakeholder details.

5. If the missing data was entered in, return to the Compliance > Section 6039 page and click Generate to click through the steps to proceed and add company contact information. The company contact is formatted into the electronic Copy A .txt file that will be uploaded to the IRS site.

Click Generate Form 3922 to begin the generation of the files.

6. Refresh the page after some time if you see a spinning wheel or navigate away and return later.

7. Once generated, click Download reports for the tax year to download a .zip file to your local drive that contains all necessary data for Copy A (efile), and Copy B (statements).

The .zip file will be split out into the following three files:

• efile will be a specially formatted electronic .txt file.

NOTE: Do not edit this file. Only download and upload to the IRS FIRE site. If any data needs to be updated, repeat the initial steps for the same filing tax year to regenerate the reports and download the updated files.

• statements should be delivered to all holders who acquired stock through an ESPP by the January 31st deadline and can be delivered electronically on Carta by clicking the link to Deliver participant statements.

For any filing questions, contact your tax advisor.

Who this affects

Public and Private Market companies with an ESPP.

Timing

This feature can be enabled on demand by reaching out to our support team or Customer Success Managers.

What's Next

The product team will be enhancing Form 3921 functionality to bring it more in line with the new Section 6039 admin experience.

Vibhu Mahajan

4 years ago12/20/2021

1099B Cost Basis Report available to Company Admins

What’s new?

We are releasing a report to all Private Market companies for administrators to review their certificate cost basis and original acquisition dates. This report will allow administrators to view cost basis data prior to the delivery of 1099B tax statements to stakeholders by mid-February.

How it works

This in-app report is available by navigating from Capitalization -> Reporting -> Form 1099b cost basis report.

Administrators will be able to view columns like stakeholder details, certificate ID's, quantity of shares sold, date acquired (original acquisition date), proceeds, gain/loss, and including various cost basis fields:

• cost_basis_total_certificate = full value going back to the original certificate
• cost_basis_per_share = cost basis of total certificate / total shares quantity
• cost_basis_sold_certificate = cost basis per share X sold shares quantity

From this report, Issuers can identify which certificates need to be changed and/or excluded from tax filing, and will have the opportunity to correct the data until late-January.

Who does this impact?

This report will be available to individuals with role permissions of Company Admin, and including Company Editors.

What’s next?

In the next month, Carta's Liquidity team will be reaching out to ensure that data has been reviewed and is considered approved by Issuers for generating 1099B statements. Stakeholders will be able to access tax statements in their portfolios by mid-February.

Vibhu Mahajan

4 years ago10/27/2021

Adjust taxes for option exercises

What’s new

Companies can now adjust taxes for option exercises previously approved in Carta.

Legal administrators can navigate to the Exercises ledger (Transactions > Exercises) and select "Adjust taxes" within a ledger row dropdown to find the new tool:

How it works

The "Adjust taxes" tool will not be available for option exercises in the "Requested" status since option exercise approvers can adjust taxes as part of the exercise approval workflow.

For ACH option exercises already approved by the company or for company-entered manual exercises, the "Adjust taxes" tool will be available for use.

After a legal administrator selects "Adjust taxes" from the Exercises ledger, they'll see the following modal:

The legal administrator will be asked to provide a reason for the adjustment. Next, the following actions are available:

• Un-check a box next to a tax type to remove it from the option exercise
• Re-check a box to re-add a previously removed tax type to the option exercise
• Update the specific tax withholding amount in the "Adjusted" column
• Select "Add another tax type" to add a new tax type to the option exercise

Note that new tax types can't be added from this modal. If you'd like to add a new tax type to the exercise, add it first in the Tax rules page (Compliance > Tax rules) and then come back to the "Adjust taxes" tool to add it to the option exercise.

Once the adjustment has been saved, both the company and the stakeholder will see a blue banner when viewing the option grant. The banner contains information about the newly adjusted tax amount and exercise cost in addition to when the adjustment was entered in Carta:

Adjusted tax amounts will also be reflected in the "Exercised and settled report" and the "Tax withholding report" (Capitalization > Reporting).

For more information, check out the support article for the new "Adjust taxes" tool: https://support.carta.com/s/article/adjust-taxes-option-exercises

Who this affects

Private and public companies that issue option grants.

Timing

Available to all companies now.

Vince Lo

4 years ago8/31/2021

Instant KYC for Non-Individual LPs Completing Subscription Documents

Non-individual Limited Partners who complete subscription documents on Carta can now be KYC’ed instantly.

What’s New

This release is a follow-up to our KYC for Individual LPs feature. If your fund leverages Carta’s KYC/AML service and you have non-individual Limited Partners (LPs) completing subscription documents in Carta, these LPs can now be instantly KYC’ed on the platform. Carta instantly KYCs the LP's control person and beneficial owner(s) in addition to the LP entity itself.

Carta’s instant KYC feature is made possible by Carta integrations with identity and verification databases like LexisNexis, Ekata, Socure, and more.

Limitations

• For this release, only US-based LPs are supported for instant KYC. Future releases will extend support to non-US LPs

How it Works

1. As an LP completes their subscription documents, non-individual LPs (for funds that avail of Carta’s KYC/AML service) will see a dedicated Know Your Customer section. Upon landing here, LPs will first be asked if their control person and beneficial owner(s) are all US persons -

2. If the control person and beneficial owner(s) are all US persons, then the LP will be shown forms to enter KYC information for these individual(s) -

3. Finally, the LP is also able to upload any entity formation documents and photo IDs here:

4. Once subscription documents are signed by the LP, the following are instantly KYC'ed: the LP entity, control person, and beneficial owner(s). If all pass KYC, this is immediately reflected in the Carta UI and General Partners are notified to countersign -

Timing: Rolled out to all on Aug 31, 2021

Audience: US-based Limited Partners, General Partners

Steven Camina

5 years ago7/1/2021

Instant KYC for LPs Completing Subscription Documents

Limited Partners completing subscription documents on Carta can now be KYC’ed instantly.

What’s New

If your fund leverages Carta’s KYC/AML service and you have Limited Partners (LPs) completing subscription documents in Carta, these LPs are now instantly KYC’ed on the platform.

Carta’s new instant KYC feature is made possible by Carta integrations with identity and verification databases like LexisNexis, Ekata, Socure, and more.

Limitations

• For this first release, only individual (as opposed to entity) LPs are KYC’ed. Future releases will support KYC for entity (non-individual) LPs as well. This includes KYC for the LP entity, LP control person, and LP beneficial owners
• For this first release, only US-based LPs are supported. Future releases will extend support to non-US LPs

How it Works

1. As an LP completes their subscription documents, individual LPs (for funds that avail of Carta’s KYC/AML service), will now see a dedicated Know Your Customer section. Here, LPs can input the additionally required information for KYC -

2. Once subscription documents are signed by the LP, the LP is instantly KYC’ed. If the LP passes KYC, this is immediately reflected in Carta and General Partners are notified to countersign -

Timing: Rolled out to Limited Partners on July 1, 2021

Audience: Limited Partners, General Partners

Steven Camina

5 years ago5/27/2021

ISO 100K Dashboard

Get the transparency you need to manage ISO/NSO splits with the new ISO 100K dashboard in Carta.

Who this affects

All Carta customers can now access the dashboard under Compliance > ISO 100K.

What's new

The 100K rule for ISOs has been a historically opaque concept in Carta - customers and their legal counsel have often found it difficult to understand how the application of the rule results in the specific bifurcation of ISO vs NSO shares in a particular option grant.

The new ISO 100K dashboard brings a new level of transparency to the way in which ISO options are bifurcated according to Carta's automatic application of the 100K rules. For specific transactions and amendments that fall outside the purview of Carta's automatic bifurcation estimates, customers and their legal counsel can request access to the dashboard's grant editor feature, which allows legal administrators to change the ISO/NSO split estimated by Carta.

Last thing to mention: we worked closely with Orrick (one of Carta's law firm partners) to make sure we were solving this problem in a way that allowed our law firm partners to better support our customers. You can read more about that here on Carta's blog.

Timing

Available now to all Carta customers.

Vince Lo

5 years ago10/20/2020

Changes to Watermark Styling

We've listened to your feedback on watermark styling obstructing the readability of the documents and we've made a few changes to address those concerns. We'll continue to iterate on our watermarking capabilities and tools in the coming months and we are starting with the following changes.

Here's a sample document with the old watermark styling

Here's the same sample document with the new watermark styling

Specifically, we've made the following changes with this iteration:

• Reduced opacity of the watermark text
• Updated alignment between the rows
• Fewer repetition

Who these changes affect?

All Carta users who choose to apply watermark on their documents. These changes will be rolling out to all users today.

Amol Patil

5 years ago9/15/2020

Additional checks for the ISO 100k limit

What's coming: Carta will automatically check for the ISO 100k limit in additional workflows and features across the app

Who this affects: Companies issuing ISOs

What's better:

Based on some inputs (FMV, number of options granted, etc.), Carta automatically detects whether or not any grants for a given stakeholder are in violation of the ISO 100k limit. If any ISO grants are in violation of this rule, Carta will automatically change the award type from ISO to ISO/NSO:

Carta already runs this automated check any time a new award is issued. We've added this automated check in a few more places, so companies will no longer need to work with Carta staff to manually run the check when making common types of award modifications.

Timing: Live for all customers on September 15th

Vince Lo

5 years ago8/31/2020

Announcing (new and improved) Release Notes

Over the last few months, we’ve been listening to your feedback on our changelog and identified usability and customization as two areas for improvement. Today, we are announcing our new and improved Release Notes in order to provide you with up-to-date information and news on Carta product changes.

Key features of our Release Notes include:

Filter by label

You can now filter out notes to only include the ones you care about most. You will be able to filter by Carta product area (Corporations, Investor Services, Platform, and CartaX), customer type (Employee, Equity Administrator, Board Member, etc. ), or release stage (General Audience, Preview, etc.)

You can filter by label on the right hand side of the screen by selecting the label you’d like to see notes on.

Subscribe for recurring product updates

Curious to know about all the great things we’re releasing on a regular basis? Subscribe to our Release Notes. You will get an email to your inbox whenever we post a new update. You can find the subscribe button at the top of the Release Notes page.

Mara Pritchard

6 years ago7/21/2020

Auto-populating the Rule 144 date for certificates

Carta now automatically populates the Rule 144 date for certificates issued as a result of an exercise.

For Carta’s corporate customers domiciled in the United States, Carta will automatically set the Rule 144 date for certificates issued as a result of an exercise to be the recorded date of the exercise.

For more information about the Rule 144 date, check out the Rule 144 date support article in the Carta Support Center.

This is a simple improvement that will save time for Carta users and applies to exercises completed on Carta using our online exercising feature as well as any off-platform exercises reflected using our offline exercise workflow.

A special thank you from Carta’s product teams goes out to Carta’s law firm users for recommending this improvement.

Keep them coming!

Vince Lo

6 years ago6/30/2020

Updating our Browser Security Protocols

Customer security and data protection is always a priority at Carta - this is why we are deprecating our support of TLS 1.1. TLS 1.1 is a HTTP security protocol for your internet browser that was released in 2006 and has known security vulnerabilities.

On July 7th, 2020, Carta will no longer be supporting, or allowing, our customers to access Carta with TLS 1.1.

You may be impacted if you are using a very old browser but can easily resolve the issue by updating your browser to the most up to date version.

Mara Pritchard

6 years ago4/30/2020

CCL Compliance Certificates

CCL borrowers and Fund Admin can now submit compliance certificates in-app.

On a quarterly and annual basis, CCL borrowers must certify that they are in compliance with all required covenants in their Loan & Security Agreement by submitting a compliance certificate.

A Fund Admin (Operator) can complete the certificate and submit to the Borrower (Signer) for signature. A Borrower can either sign these submitted forms or fill one out, sign, and submit directly. Both an Operator and a Signer can retract unsigned compliance certificates (e.g. certificate was filled out in error or is no longer applicable).

George Cen

6 years ago4/22/2020

Exercises Ledger & Managing 83(b) Elections

Today, all of Carta’s private, corporate customers have access to the Exercises ledger with 83(b) administration features.

Awhile back, Carta introduced the Exercises ledger. The ledger provided a view of all exercise requests across the company, along with simple filtering by exercise status and date range. We’ve spent some time gathering and incorporating feedback from our customers to provide an improved Exercises ledger with additional features. A few highlights are illustrated below:

Admins are now given a tab that filters for early exercises:

From there, admins can mark whether or not a shareholder chose to make an 83(b) election, and even send notifications reminding the shareholder to upload their 83(b) election form in Carta:

Additionally, admins can reject a submitted exercise request when reviewing the request from within the Exercises ledger:

Filtering by payment type is now possible - this should be especially useful for companies needing to process and accept wire transfers for exercise payment:

Vince Lo

7 years ago7/19/2019

ASC 820 Valuation Modeling

We’ve made improvements to the ASC 820 valuation workflow. Now when you create a new valuation, you will be able to run through different scenarios, generate reports for each scenario, and select which scenario you wish to use as the final version in your financial statements.

Learn how to create a valuation on Carta >

Learn how to create a valuation scenarios >

Connor Bathen

7 years ago5/13/2019

ASC820 valuations for Firms without cap table access

Are you getting ready to do your fund’s quarterly or annual ASC820 valuations? Want to get started on that valuation but your portfolio company hasn’t granted you cap table access? Not a problem, we’ve made this step easier!

You can now create an ASC820 valuation for a portfolio company that has not granted you cap table access just yet. To do this, navigate to the portfolio company, click on the valuations page, and select the Create valuation button.

You will then be prompted to create a pro-forma cap table for the portfolio company.

Once done, you will be able to create a valuation using that pro-forma cap table.

For more information regarding pro-forma cap tables and the ASC820 valuation tool, reach out to investorservices@carta.com.

Div Shivesh

7 years ago11/20/2018

Earnings per share report (basic & diluted)

Quarterly and annual reporting can be time consuming and stressful. For our public companies, help is on the way with our new earnings per share report! You can now calculate your company’s basic and diluted earnings per share faster than ever.

To access this report, navigate to the Reports page and search for Earnings per share worksheet under the Compliance section. Be sure to enter the start and end dates of the fiscal period, then export the report.

Connor Bathen

8 years ago7/19/2018

2FA Status update

We strongly recommend that you enable 2-factor authentication to keep your account secure.

If you do not have access to your device or cannot receive the code, you can raise a request to disable it through the Carta platform.

In case we do not have enough information to approve your request, you will now be able to schedule an identity verification call directly from the status update email - no need to contact support first.

Before:

After:

Connor Bathen