![]() The startup will then typically issue about 6,000,000 to 8,000,000 shares to its initial set of founders (as there is a reserve usually kept for initial/short term issuances to people like employees, consultants and advisors). My recommendation is based on my belief that startups should authorize 10,000,000 shares of common stock upon filing the its charter. While I typically see either $1 or “no par value” common stock when looking at new client startups that have incorporated on their own or via an online service, I typically recommend that a startup corporation’s Common Stock par value be set at $0.00001 and no higher than $0.0001 per share. Today, that concept is somewhat archaic, but it still plays an important role and should be thoughtfully considered when forming a startup company by filing the certificate of incorporation. ![]() In the US, par value was created during the time of the great depression in order to ensure a shares could not be sold under a certain price. ![]() ![]() Par value is the minimum price that a corporation can issue its shares. ![]()
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