Six Steps to Issue Your First Securities Certificate
After you set up your company, one of the first tasks is to issue shares to your company's shareholders.
Step 1 – Write down or list each shareholder's name, address and percentage of companies they will have
Step 2 – Determine how many shares of a company can be issued. The number of shares authorized to be issued is indicated on the first page of your company's articles of association. If you can not find them there, you can check your company's listing address on your State Department website and see how many shares are authorized. If you still can not find the number of shares, please call the Secretary of State
Step 3 – Calculate the number of shares you will issue to each individual shareholder based on the percentage of ownership and number of shares. Do not send out all available stocks. If you have 25,000 shares to issue, you may want to start with only 1,000 or 100 shares. If you have additional investors or stakeholders to enter the company, this will give you more shares to issue
Step 4 – Name of shareholder, number of shares and certificate number. Stock certificates can be purchased directly from the office supply store or purchased with a company record book that usually carries your first 10 or 20 certificates
Step 5 – Record each certificate in your inventory ledger issue. In the stock ledger you will record the name of the shareholder, the number of shares issued, the stock certificate number, the amount they paid for the stock, what type of stock they are (Ordinary, Preferred, Voted, No Voting, etc.) , And who will sell the shares to new shareholders.
Step 6 – Send Stock to Every Shareholder
These steps provide guidance for the issuance of new shares in the company. Other tasks that should be accomplished when setting up a new company are initial meetings of shareholders and directors, written resolutions and opening of bank accounts