How many shares should be authorized and should stock have a par value?
Florida requires documentary stamps on stock in proportion to its par value, which can be very small. Most people are comfortable with stock having$.001 par value, and typically 1,000 shares of stock are sufficient to handle the potential ownership arrangements of a small company (fractional shares can always be issued), and round numbers have the added benefit of making it easy to calculate the percentage owned. If ownership will be more fragmentary, we recommend that the number of shares authorized be increased but kept at a round power of ten. Remember, too, that ownership by more than a small group people who are actively involved in the business may raise securities law issues best addressed by an attorney practicing securities law.
