- Jurisdiction
- California
Hello,
I'm trying to incorporate my startup in CA and the shareholders will be me and a small investor whom I'm giving 13%.
I'm confused about "shares per value". I've read it doesn't have real implications and to set it low ($0.00001). However someone else told me "shares per value" is what each share is worth?
So for instance if I authorize 1000 shares at Shares Per Value set at $1, does this mean my company is worth $1000 and each share is worth $1?
I would love some clarification as to how to set my "share per value".
Thank you in advance
Brian
Hello everyone sorry for another noob question,
I'm filing an S-Corp for my startup with a seed investor. Authorizing 10M shares with par value $0.00001 (4 zeros).
If I'm giving my investor 13% equity in the company so how many shares does that equate to?
Company valuation = $500k
Seed investment = $65,000
Thank you for your patience and help
Brian
Ok thank you....so then irregardless of value, I would be issuing 1.3M shares?
It's not the math I can't figure out, I'm trying to make sure I'm understanding the terminology to do the correct math.Thank you
Thank you for the reply. I'm a bit confused with your explanation. I'm authorizing 10 million shares but NOT issuing all of it. My investor is getting 13% equity so wouldn't that mean I'm issuing to him 1.3million shares? Meaning 10million x 0.13 = 1.3 million
However in your explanation you are saying to multiply 0.13 with 1.3million.
Thank you ZIgner. I have one more question and I will get out of your way. Thank you again for your time!
My investor is asking me for the value of his share for his book keeping and taxes. Is this essentially his Issued Shares x $0.00001 (par value)?
The benefit of asking for direct legal advice isn't beyond me....I get it. However what's the point of online forums if we cannot ask simple questions for help? Others have been quite helpful, I don't understand the point of you continually repeating the obvious. Thank you for your time. Next...
LOL.... I love the sense of community here. Wow you guys all sound like a bunch of jerks. Thank you for your time everyone. Bye
I'm trying to incorporate my startup in CA and the shareholders will be me and a small investor whom I'm giving 13%.
I'm confused about "shares per value". I've read it doesn't have real implications and to set it low ($0.00001). However someone else told me "shares per value" is what each share is worth?
So for instance if I authorize 1000 shares at Shares Per Value set at $1, does this mean my company is worth $1000 and each share is worth $1?
I would love some clarification as to how to set my "share per value".
Thank you in advance
Brian
Hello everyone sorry for another noob question,
I'm filing an S-Corp for my startup with a seed investor. Authorizing 10M shares with par value $0.00001 (4 zeros).
If I'm giving my investor 13% equity in the company so how many shares does that equate to?
Company valuation = $500k
Seed investment = $65,000
Thank you for your patience and help
Brian
Ok thank you....so then irregardless of value, I would be issuing 1.3M shares?
It's not the math I can't figure out, I'm trying to make sure I'm understanding the terminology to do the correct math.Thank you
Thank you for the reply. I'm a bit confused with your explanation. I'm authorizing 10 million shares but NOT issuing all of it. My investor is getting 13% equity so wouldn't that mean I'm issuing to him 1.3million shares? Meaning 10million x 0.13 = 1.3 million
However in your explanation you are saying to multiply 0.13 with 1.3million.
Thank you ZIgner. I have one more question and I will get out of your way. Thank you again for your time!
My investor is asking me for the value of his share for his book keeping and taxes. Is this essentially his Issued Shares x $0.00001 (par value)?
The benefit of asking for direct legal advice isn't beyond me....I get it. However what's the point of online forums if we cannot ask simple questions for help? Others have been quite helpful, I don't understand the point of you continually repeating the obvious. Thank you for your time. Next...
LOL.... I love the sense of community here. Wow you guys all sound like a bunch of jerks. Thank you for your time everyone. Bye