How Many Shares Should You Authorize For Your Delaware Corporation?

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Doug Bend answers a question which is posed when incorporating in Delaware: how many shares of stock do you need to authorize? He outlines the two approaches to answering this question. On the one hand, you can save your new corporation $275 per year by authorizing a small number of shares. On the other hand, you can gain flexibility and most likely better motivate employees by authorizing millions of shares.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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