Oct 3 2011

How Many Shares Should I Use To Incorporate My Company?

Question: How many shares should I use to incorporate my company?

Keep it simple.  The more shares you authorize, the more you’ll have to pay in taxes (although these are not large numbers).  They key is having enough shares to have the ability to grant all sorts of equity to different people who help your company.  For instance, if you only authorized 10 shares, the minimum amount of the company that you could grant would be 10%.  So you want a large enough number to be able to grant small portions to folks.  Whatever number you choose, don’t worry.  These are all easily changeable with stock splits later down the road.