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    3 Replies Latest reply on Dec 15, 2008 1:18 PM by kevhan

    Shares for a startup

    Maxlingo Wayfarer
      How do I maintain some ownership in my statup C Corp if I dont have money to buy shares and have no assets or intellectual property to give to the new corp?
        • Re: Shares for a startup
          LUCKIEST Guide

          Shares, * *You maintain ownership in your C Corp by keeping more than 50 % of the stock.

           

           

          When you incorporate, you typically purchase a set of corporate records, which includes stock certificates
          and a stock transfer ledger (a share register). Further, when you incorporated, your corporation was
          'authorized' to 'issue' a given number of shares. If you're the only founder and investor, you typically
          put some money into the corporation and take some shares in exchange. That is, you issue some corporate
          shares to yourself. How much you pay for a share is pretty arbitrary as is the number of shares you
          receive.

           


          Do you have a Lawyer?? An Accountant??

          Good luck, LUCKIEST
          • Re: Shares for a startup
            Bridge Navigator
            If you are just starting, you may want to consider an "S" corp. or LLC structure versus a "C" corp especially if you are the only owners or the number of owners will be limited.

            Many websites will help you incorporate for $150 plus state fees. Many states allow you to incorporate yourself online and you pay only the state filing fees (such as FL). Make sure you get your tax ID (EIN) number from the IRS.

            C corps. have the potential to create double taxation issues for you. Do some basic research on the web about company structure type and/or talk to a good accountant.
            • Re: Shares for a startup
              kevhan Adventurer
              If its your corporation sell yourself the shares for $1.00 each take 100 shares for $100.00 and don't issue new stock until you are ready for investors (if ever) . When you set up the corporation authorized 200 shares.

               

              Kevin
              BookkeeperWorld.com