Andrew grosvenor12/21/2023 ![]() ![]() In this case, it really doesn’t matter much how many shares a company has. On one end of the spectrum is the sole founder who intends to grow the business from the ground up, without taking outside investment or issuing equity to employees. Stock is “issued” when the company issues or sells it to an owner. Here are the basic definitions: “authorized” stock is the maximum amount of stock that the company is allowed to issue (this can be changed by amending your filings with the state). Once you can answer these questions, you’re in good shape to get started. Will you be seeking outside investment? Will you be issuing stock to employees and consultants? How much control over the company do you want to (try to) retain? ![]() Are you a sole founder? Do you have co-founders, partners, investors? Next, think about your plans for the company. Here are some factors to keep in mind.įirst off, consider your initial ownership structure. There’s no single right answer, but you can save some time (and an additional filing fee) by thinking about these issues up front. What does “authorized” mean? What is “par value”? What’s a good number of shares? 100? 1,000? 10,000,000? Many founders begin the paperwork, but get stumped when they need to list a number of authorized shares and par value. Sometimes starting a company is as easy as filing a few forms and paying a fee, but in the startup world some common questions come up. Originally published in the New Hampshire Union Leader on September 11, 2016 ![]()
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |