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I am starting a new company in Nevada. How many shares to issue?

Date: 10/06/2007 | Category: Incorporation | Author: developers

I am starting a new company…how many shares should I issue? I am unclear on what is simplest and best.

Nevada wants to know total number of shares and value of each share. If you decide to have one share, one thousand or one million it is totally up to you. Many people do basic $50,000 shares and value of share $1.

For example you want your company to be public sometime in the future or get a lot of investors. Then you will need a lot of shares so you decide to issue $75,000,000 shares with value $0.001.

Here is what you have to watch. Nevada State filing fee is based on the value of the total number of authorized shares stated in the Articles of Incorporation. For the purpose of computing the filing fee, the value (capital) represented by the total number of shares authorized in the Articles of Incorporation is determined by computing the:

A. total authorized shares multiplied by their par value or;
B. total authorized shares without par value multiplied by $1.00 or;
C. the sum of (a) and (b) above if both par and no par shares.
Filing fees are calculated on a minimum par value of one-tenth of a cent (.001), regardless if the stated par value is less.

So try to keep the value (capital) under $75,000 to keep the lowest filing fee in Nevada. Here is how Nevada computes filing fee based on capital:

____ $75 for capital $75,000 or less
____ $175 for capital $75,001 and not over $200,000
____ $275 for capital $200,001 and not over $500,000
____ $375 for capital $500,001 and not over $1,000,000