Once you have formed your corporation, one of the first tasks is to issue shares to the shareholders of the company. There are six basic steps to properly issuing stocks.

Step 1: Write or write the name, address, and company percentage of shareholders of each of the shareholders.

Step 2 – Determine how many shares the corporation has available to issue. The number of shares authorized to issue is indicated on the first page of its articles of incorporation. If you can’t find them there, you can go to your corporation’s listing on your Secretary of State’s website and see how many shares are authorized. If you still can’t find the share number, call the Secretary of State directly.

Step 3: Calculate the number of shares you will issue to each individual shareholder based on the percentage of ownership and the number of shares. Do not issue all available actions. If you have 25,000 shares available for issue, you may want to issue just 1,000 or 100 shares to get started. This will give you more shares to issue at a later time if you have additional investors or shareholders coming into the company.

Step 4 – Physically write the share certificates with the name of the shareholders, the number of shares they own and the number of the certificate. Stock certificates can be purchased from office supply stores, directly online, or you can purchase a corporate ledger that will typically come with your first 10 or 20 certificates.

Step 5: Record each certificate that has been issued in your stock ledger. In the share ledger it will record the name of the shareholder, the number of shares issued, the number of the share certificate, how much they paid for the shares, the type of shares they were (common, preferred, with voting rights, without the right to vote). vote, etc.), the date of the transaction and who sold the shares to the new shareholder. If the company issued the shares, it would be considered an initial offering of the company.

Step 6: Send the share certificates to each shareholder.

These steps provide a guide for issuing shares of a new corporation. Additional tasks that must be completed when forming a new corporation are the initial meeting of shareholders and directors, writing resolutions, and opening a bank account.