DETERMINE THE COMPOSITION OF STOCK

Many different options are available in regards to the structure and composition of a corporation’s stock. Where the corporation has fewer than 35 shareholders, a simple, inexpensive model for the structure of corporate stock may be most appropriate. Thus, most small business owners incorporate their businesses with only one class of stock.

In addition, a savvy business owner will recognize that authorizing a number of shares that will qualify for the minimum annual state filing fee is often a wise, money-saving choice.

After the corporation begins to thrive and is then considering issuing shares to the public, modifying the stock structure can be accomplished by filing an amendment to your articles of incorporation with the state at any time.