Authorized Shares/ Par Value
How many shares should I authorize?
It depends on the size and type of your business and whether you will be doing business in states other than Georgia. Generally, you should authorize more shares that you intend to use so that you can bring in more investors in the future or raise capital by selling shares in the future.
If you are certain you will only be doing business in Georgia, there is no upper limit on the number of authorized shares. Usually 5,000 will suffice (10,000 to 100,000 for larger ventures). However, if you will be doing enough business in another state that requires registering in that state as a foreign corporation, you should consider limiting authorized shares to 10,000, because many other states levy a tax on the authorized value of shares, and by keeping this number relatively low you will most likely be able to pay the minimum tax.
What par value should I choose?
Par value is the lowest amount the corporation will charge for issuing new shares of stock.
- If you are going to operate in Georgia and all shares will be purchased for cash, choose no par value or $1.00 par value.
- If you are only going to operate in Georgia and some shares will be issued for services rendered to the corporation and not for cash, choose no par value.
- If you will be operating in other states and know which states you will be operating in, check with the corporations department of that state and find out if they base fees on taxes or authorized capital. In order to avoid those fees, keep your shares and par value low enough to avoid those fees.
- If you will be operating in other states and don’t yet know which ones you will be operating in, keep your authorized shares and par value low. One thousand (1,000) to ten thousand (10,000) authorized shares and a par value of $0.01 should be sufficient to avoid extra fees in other states.
Georgia Areas We Serve
Coleman Legal Group, LLC handles cases in the following cities and communities: Atlanta, Alpharetta, Roswell, Johns Creek, Milton, Cumming, Marietta, Sandy Springs, Woodstock, Kennesaw, Gainseville, Norcross, Lawrenceville, Midtown, Inman Park, Duluth, Buckhead, Dunwoody, Vinings and Smyrna.
Our attorneys frequently handle cases for clients residing in the following counties: Fulton, Gwinnett, Forsyth, Cobb, DeKalb, Henry, Cherokee, Douglas, Carroll, Coweta, Paulding, Bartow, Hall, Barrow, Walton, Newton, Rockdale, Henry, Spalding, Fayette and Clayton.
Coleman Legal Group, LLC’s Georgia lawyers practice in the areas of Business Law, Divorce, Family Law, Immigration and Bankruptcy. We have two convenient offices located at:
Alpharetta Georgia Office
5755 North Point Parkway
Alpharetta, GA 30022
Atlanta Georgia Office
659 Auburn Avenue Northeast
Atlanta, GA 30312
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