Resources For Connecticut Incorporations
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Resources For Connecticut Incorporations |
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Calculating And Issuing Shares of Stock In order to properly complete your corporate documents, you will need to determine the number of shares of stock to be issued to the various shareholders. As a small business, most small businesses initially authorize either 1,000 or 10,000 shares of Stock. It is recommended that you do not issue all of such stock upon the inital issuance. Stock that is not issued is held in reserve. It does not determine percentage of ownership, but leaves additional stock in reserve in the event that you agree to add additional shares. in Connecticut, there is a Minimum Franchise Tax Fee of $150 for authorized share amounts up to 20,000 shares. You incorporation forms are set up for the minimum fee. If you wish to authorize more than 20,000 shares of stock, you will need to contact the Connecticut incorporations office to determine your fee. If you wish to minimize the total filing fee, you should authorize under 20,000 shares of stock`in`your initial articles of incorporation. This will result in a total filing fee of $200.00 (including the filing fee and minimum franchise tax payment). If you need to authorize more stock, you will need to contact the state corporations office for the proper fee. CONTACT INFORMATION You can always amend your Articles of incorporation to authorize additional shares of stock, but this requires additional state filings and related fees. In the usual situation, where there are three shareholders for example, each who own one-third of the stock of the Corporation, you should issue each shareholder an equal number of shares, for example 100 shares each, leaving 700 shares in reserve. Where percentage of ownership is more complicated, you should use the same general principals to calculate the actual number of shares to be issued. The main point being that it is adviseable to leave shares in reserve. Main Connecticut Resource Page
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