Legal Question in Business Law in Arizona

what amount do I need to put for authorized capital on the article #

: The Corporation shall have the authority to issue____ shares of common stock.


Asked on 2/17/10, 1:14 pm

1 Answer from Attorneys
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Is completely up to you. Can be 100 or 1,000,000 (some states charge for high capitalizations so we usually go smaller). Key thing is to not issue all of the authorized shares. So, e.g. you authorize 1000 shares of common stock. You then issue 100 (or whatever) to you and 100 to your partner, or whatever. These leaves stock for future growth. Otherwise have to amend filed Articles - a hassle and unnecessary expense.

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Answered on 2/23/10, 8:37 am


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