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Resources For New York 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. New York is unique because of the tax payment on authorized shares. The forms included in your Package authorize 200 shares of NO PAR value stock. A typical corporation in the State of New York is formed with 200 shares of NO PAR value stock. The initial tax paid at the time of incorporation is $10.00. This covers the original authorized 200 shares of stock and is the minimum initial tax that can be paid upon incorporation. If you wish to authorize more than 200 shares or to issue shares with a total par value in excess of $20,000, you will need to pay additional tax on incorporation. The rate of additional tax is $.05 per share on no par value stock and .05% of the par value on shares that have a stated par value. Under New York law, shares that have no par value can be sold at any price. Shares in which you state a par value cannot be sold for less than the state par value. If you require a different structure other than 200 shares of NO PAR value stock, you will need to make manual adjustments to your form documents that are included in your package. If you have any questions about this, contact the state incorporation office. CLICK HERE
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 50 shares each, leaving 50 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. |
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