Issuing stock in a corporation is a method for distributing ownership across multiple individuals and businesses. Each share in the corporation issued is representative of proportional ownership of the net worth of the business. The exact method for issuing stock differs depending on the state in which the business is incorporated.
Items you will need
- A lawyer
- An accountant
Contract with a lawyer and an accountant that will assist you in issuing stock for your company. They will be able to handle all the relevant paperwork. You must have a lawyer to successfully issue stock to oversee that the shareholder agreement is properly tendered.
Create the shareholder agreement if one has not already been created for the business. The shareholder agreement will outline who the directors of the company are and what roles that the shareholders perform. This agreement can be altered at a later date.
Determine the number of shares that will be distributed. The directors of the corporation must make the decision in concert. Also, the mixture of preferred and common stock must also be decided. Preferred shareholders have top priority on company assets if it enters bankruptcy.
Contact a printer to begin printing stock certificates for the company. To avoid forgery and other complications, stock certificates are printed on special paper and have anti-copying devices embedded in them. Distribute these certificates appropriately.
Modify the shareholder agreement should there be any changes to the company or if significant outside investment occurs. The agreement must also be modified if the company decides to become public and issue stock on a public exchange.