Legal Question in Business Law in Florida

As a Franchise Attorney I can advise as follows. You should probably authorize at least a million shares, even though you actually issue considerably less, at least initially. As for establishing value, that's an entirely different topic, but a lot of start-ups use $1 a share. You really should consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

Legal advice for your inquiry must be based on information regarding the purpose and ownership of the corporation. If the stockholders will be limited to a few persons or members of a family, most FL corporations will simply specify 1000 shares or some slight variation. If the purpose of the corporation is to sell shares to the public or to other defined groups, the number of shares should reflect the potential maximum of shares to be sold. Also, realize that the number of shares may be adjusted by subsequent amendment.

As a corporate attorney, I would advise you to authorize those number of shares you really need. To exceed that amount would only create confusion. Normally I do between 5000 and 10,000. I put in 10 cent par value.

It is somewhat a confusing area unless you understand what you are trying to accomplish. Therefore I would recommend talking to an attorney before proceeding and thereby avoid errors.