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.
Give us a call at 770-609-1247 to arrange a confidential consultation with one of our attorneys.
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.
Our main office is located in Alpharetta Georgia at: 5755 North Point Parkway, Suite 51, Alpharetta, Georgia 30022. We also have offices conveniently located at:
| Alpharetta Georgia North Point Park 5755 North Point Parkway Suite 51 Alpharetta, GA 30022 Phone: 770-609-1247 | Map | Atlanta Georgia Colony Square 1201 Peachtree Street, 400 Colony Square, Suite 200 Atlanta, GA 30361 Phone: 770-609-1247 | Map |
| Dunwoody, Sandy Springs GA 400, Atlanta Georgia 1200 Abernathy Rd Building 600 Atlanta, GA 30328 Phone: 770-609-1247 | Map | Cumming Georgia The Avenue Forsyth 410 Peachtree Parkway Building 400, Suite 4245 Cumming, GA 30041 Phone: 770-609-1247 | Map |
| Johns Creek, Duluth GA 11555 Medlock Bridge Road Suite 100 Johns Creek, GA 30097 Phone: 770-609-1247 | Map | Duluth Georgia Sugarloaf 2180 Satellite Boulevard Suite 400 Duluth, GA 30097 Phone: 770-609-1247 | Map |
| Kennesaw Georgia TownPark Center 125 TownPark Drive Suite 300 Kennesaw, GA 30144 Phone: 770-609-1247 | Map | Lawrenceville Huntcrest 1755 North Brown Road Suite 200 Lawrenceville, GA 30043 Phone: 770-609-1247 | Map |
Copyright © 2020 | Coleman Legal Group, LLC | All Rights Reserved. Coleman Legal Group, LLC • 5755 North Point Parkway, Suite 51 • Alpharetta, GA 30022 • 770-609-1247 DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
