If you are a new business owner you might be wondering: “How much stock do I really need and what is ‘par value’?”
The answer to these questions is simple. Each state has a guideline for authorizing stock in your corporation. For Delaware, it is recommended that you have, at most, 1,500 shares of common stock authorized. This will guarantee you the lowest fees both at the time of incorporation and annually, since the Delaware Annual Franchise tax is based on the number of shares authorized.
Par value refers to the minimum selling price assigned to the stock. For example, a par value of $1.00 means that the shares cannot be sold for less than $1.00. “No par value” indicates that there is no minimum price associated with the stock.
For more information about state stock authorization guidelines and par value contact CorpCo today.