I am setting up a "C" Corp for my sister and her business partner. Can someone explain to me about shares?

I understand you have to have a certain number of shares and a par value. Can someone explain to me the best number and how to establish that and the par value? Any web sites would also be appreciated. Thank you.

I am setting up a "C" Corp for my sister and her business partner. Can someone explain to me about shares?
Tim is correct - you can set them at whatever you want them to be.





We set ours up at 1 share = $1000. That was easiest for us because each partner contributed exactly $1000 increments to the start-up costs.





Make it whatever is convient for your accounting and size of your company.
Reply:It's probably best to leave this one to a professional. Check with your, or your sister's CPA. You don't want to mess this up.
Reply:At least here in Canada we don't have par value any more.





If you don't know a lot about it, it may be better to hire an accountant to set it up for you. It's only a one time thing and it will only cost you a few hundred dollars most likely. Better to make sure you have it done right.





The main thing is you want enough shares. Say if there are 2 owners, issue a million shares and each person takes 500,000 or whatever the ratio is. That way if someone else wants to become a partner, you can give them a certain number of shares and it is easy to get the % ownership you want. Say if you have 2 or 10 or even 50 shares, it will be much harder to get a specific ownership percentage.





Take the total contributed capital and divide it by the number of shares you are issuing and that will be the price per share. It's one or two fairly simple journal entries, although there may be legal issues to go along with it that you want to see your lawyer about.
Reply:You can set up the number of shares and par value however you want.





It is easy if you set par value to $1.00 and number of shares can be any number.