Number of Shares: Par Value

Nov 23rd, 2009, 05:11 PM #1 (**permalink**)

I have been looking over the Initial Articles of Incorporation.

The form seems easy enough except at the bottom of the first page (#4) it has a fill in for the number of shares, type and par value.

I have been searching for the last couple of hours and can't figure out what this means.

The instructions point to this form (ORC 1701.04(A)), but it does not seem to describe what should actually be filled in.

Any guesses?

Nov 23rd, 2009, 06:55 PM #2 (**permalink**)

This is a statement that, to the best of my experience, has no proper answer.

In the corporations I've seen, you would usually issue a huge number of shares at an itty-bitty price.

Something like 3,000,000 shares at a par value of $.01.

This means that you'll issue $30,000 worth of stock for this company.

The "type" is normally "Common".

All that being said, if you need to ask these questions -- you need an attorney. This is the wrong place to scrimp.

Nov 23rd, 2009, 10:01 PM #3 (**permalink**)

I have read on here as well as other places that setting up a LLC was not hard and that an attorney was not needed.

I guess the devil is in the details. I left a message with an attorney today, thanks for the response.

Update: got the wrong freaking form! DOH!

Nov 24th, 2009, 11:13 AM #4 (**permalink**)

Setting up an LLC really isn't that hard.

But you are asking questions related to setting up a Corporation, not an LLC.
(Although you can be set up as a corporate LLC, I believe.)

Corporations have shares.
LLC's have percentage of ownerships -- generally.

The attorney is always a good move -- especially your first time.

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