Authorized Stock
Enter the number of shares that the corporation will be
authorized to issue and the par value. It is not required that
the corporation issue all of the stock. For small businesses,
1,000 shares is generally sufficient, although you may
authorize as much as you like. It is not uncommon for
company’s that expect to raise capital or go public to
authorize several million shares. Please note, however, that
some states charge an annual franchise tax or charge extra
to incorporate for large numbers of shares.
For par value, you can choose no par value or any higher
amount. Corporations generally choose a small amount,
like $0.01 or no par value.
If your state has specific requirements for share
authorization or par value, see it's FAQ.
Some states let you issues more than one class of stock.
Common Shares - Market dividends or appreciation (or
drop) in trade earnings. Company voting rights.
Preferred Shares - Fixed dividends or interest rates. No
voting rights. Upon liquidation, preferred shares get paid
first. Perpetual has no maturity date. Term has a maturity
date set in the company bylaws.
authorized to issue and the par value. It is not required that
the corporation issue all of the stock. For small businesses,
1,000 shares is generally sufficient, although you may
authorize as much as you like. It is not uncommon for
company’s that expect to raise capital or go public to
authorize several million shares. Please note, however, that
some states charge an annual franchise tax or charge extra
to incorporate for large numbers of shares.
For par value, you can choose no par value or any higher
amount. Corporations generally choose a small amount,
like $0.01 or no par value.
If your state has specific requirements for share
authorization or par value, see it's FAQ.
Some states let you issues more than one class of stock.
Common Shares - Market dividends or appreciation (or
drop) in trade earnings. Company voting rights.
Preferred Shares - Fixed dividends or interest rates. No
voting rights. Upon liquidation, preferred shares get paid
first. Perpetual has no maturity date. Term has a maturity
date set in the company bylaws.
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