Add Formulas and Calculations Legal Delaware Incorporation Forms For Free

The formation process itself is straightforward and streamlined: Choose a company name and entity type. Select and contact a registered agent. Finally, file a Certificate of Incorporation. The Division of Corporations offers professional customer service and expedited services.

When the need arises, a majority of shareholders or the Board of Directors can vote in favor of allowing new shares. How Many Shares Should We Authorize? Regardless of your initial funding, a new startup's sweet spot is usually 10 million authorized shares.

To form a corporation in Delaware, you need to take the following steps: Choose a corporate name. Appoint a Delaware registered agent for your corporation. Prepare and file a certificate of incorporation with the SOS. Prepare corporate bylaws. Appoint directors and hold the first board meeting. Issue corporate stock.

Choosing a number depends on how big you expect your company to get and how much you think it will be worth. Most stocks at the IPO have about a $10 per share value. If you estimate your company's value to be $1 million at the IPO, then the number of authorized stocks should be 100,000.

Delaware's default is the authorized shares method, which is often much, much more expensive than the assumed par value calculation. It is the calculation they use when sending their annual franchise tax notifications. The authorized shares method uses the number of shares you have authorized2 in your Charter.

A Popular Starting Point: 10 Million Shares Typically, founders might initially issue themselves between 6 and 8 million, leaving the rest for future employees, advisors, and investors. However, this number is not set in stone and should be adjusted ing to your startup's specific needs.

The formation process itself is straightforward and streamlined: Choose a company name and entity type. Select and contact a registered agent. Finally, file a Certificate of Incorporation. The Division of Corporations offers professional customer service and expedited services.

The incorporator's name and mailing address will be listed on the Certificate of Incorporation. The State of Delaware does not require a physical office address for the address of the incorporator. The incorporator's address can also be located anywhere in the world.

?Changes to the Certificate of Incorporation must be ratified by a majority vote of shareholders holding voting stock. Your Delaware Certificate of Amendment should include: The date of the board of directors meeting where the amendment was approved. The article number that was modified.