What is “Par Value” and corporate stock?
Par value is the amount each share of corporate stock is worth, or its value. Each state is different with its par value parameters. Some states allow fractions of a cent in the par value, meaning your shares can be valued at $.001, while others cannot. Some states calculate franchise tax by the shares and par value of the corporation. You should make this decision with a legal or financial professional who works in the state you formed your corporation in. In general a low share amount and small par value will result in the same minimum franchise tax, if applicable.
