Confused about issuing stock

[blueman]

What is the name of your state? NY
Hi There,
My wife and I just started a corporation in NY. During the setup it was automatically issued with 200 shares of no par value stock.

My wife and I have a 50/50 ownership of the business. Does that mean that we each own 100 shares? So now that I have received my stock certificates and corporate seal do I issue a stock certificate to each of us for 100 shares?

Then my next question - if in the future we want to add an additional shareholder, do we issue additional shares (beyond the initial 200) or do we have to transfer shares from our ownership to the new shareholder??

Very confused by this. None of the books on incorporation I have read really deal with this.

Thanks .... Blueman

 

[clueless3]

Does that mean that we each own 100 shares?

No stockholder "automatically" owns any share until specifically issued to him. Your company needs to issue stock to its stockholders before they can get those shares.

So now that I have received my stock certificates and corporate seal do I issue a stock certificate to each of us for 100 shares?

Your company can issue as many shares as it wants, for whatever dollar it wants per share, in order to raise capital.

if in the future we want to add an additional shareholder, do we issue additional shares (beyond the initial 200) or do we have to transfer shares from our ownership to the new shareholder??

The new stockholder can "buy" back shares from existing stockholders, or the company can issue more shares to the new stockholder.

For many states, the company can issue up to 75,000 shares without having to pay extra. Beyond that, the company has to pay to the state a fee. I'm surprised to know that NY "automatically" gives (only) 200 no-par shares to newly formed corporations. That number is usually requested by the organizer, not "automatically" issed by the state.