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    1 Reply Latest reply on Dec 13, 2009 1:04 PM by knowhosting

    How many shares to authorize

    Ryan524 Wayfarer
      I started my busiess a little over a year ago. When I started I set it up to authorize to issue 100 shares, 55 of which I have purchased, the remaining 45 are unowned. I am looking into the possibility of increasing this number, I am considering 50,000 but I have read one article that even recommends 10,000,000 for a small business because the larger number you'll offer employees for stock options (which I do want to do) look more enticing even though it would be the same percentage.

      I already have majority control, what I want to do now is sell some stock to friends and familily members to raise some capital and have enough stock left over to offer myself and any future employees I hire stock options.

      Anyone have any recommendations is 10,000,000 shares reasonable or is 50,000 fine, or something else. What do you recommend. As I not I am incorporated in Washington State (which per my research does not tax you based on how many shares you're authorized to issue).