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There is no minimum number of shares that must be authorized in the articles of incorporation. One or more shares may be authorized. However, the corporation may not sell more shares than it is authorized to issue and it must receive consideration in exchange for its shares.
A minimum of one share must be issued upon incorporating. Additionally, if you plan on having more than one shareholder, then you must issue at least one share per shareholder. You can’t divide a whole share into parts (i.e. 1 share split 50\% each to two different shareholders).
How many shares do you need to attend a shareholder meeting?
The right to attend a General Shareholders’ Meeting shall accrue to the holders of at least 300 shares, provided that such shares are registered in their name in the corresponding book-entry registry five days in advance of the date on which the General Shareholders’ Meeting is to be held, and provided also that they …
Par Value and Share Valuation – If you decide you need more than 5,000 authorized shares for your corporation, the Delaware Franchise Tax calculation is no longer a matter of consequence, and now the focus shifts to the par value assigned to the shares.
The Delaware Division of Corporations allows Delaware general corporations to hold up to to 1,500 shares of no-par stock fee-free. Learn more about Delaware no-par stock and par value. When do I issue stock? When and how you choose to issue stock to your investors is entirely up to you.
How many shares of stock should I authorize for MY Corporation?
A good rule of thumb is to authorize only what the corporation will need. Corporations with 5,000 or less authorized shares are considered minimum stock and will pay the minimum Delaware Franchise Tax each year.
What is the minimum par value for a Delaware corporation?
( Caveat: If you are forming a Delaware corporation with a large number of shares, be sure to specify a low par value, such as $0.0001 per share, to avoid having to pay excessive annual fees to the state. See In Delaware, No-Par-Value Can Cost a Bundle and How To Calculate Franchise Taxes .)