Everything You Need to Know About Stock Transfers

By Devin Scott Tuesday, August 7, 2018

what should i know about stock transfersOne of the most important templates included in a Corporate Kit is the stock transfer ledger.  With this corporate stock ledger, you can keep records of your company's stock transfers.

You are not required to file anything when you issue shares of stock; you don't have to inform your Registered Agent nor the Delaware Secretary of State.

Typically, people hand a stock certificate to a shareholder and then document the exchange in the company's stock transfer ledger, which is utilized to properly record the transfer.

Get a free stock transfer ledger.

Without this ledger, it may be hard to keep track of the company’s shares and the ownership of the shareholders. The following list outlines the information you should include when you make stock transfers.

The line items on the stock transfer ledger often include:

  • Name of stockholder (the person who holds the shares initially)
  • Stockholder’s place of residence
  • The date he/she became a shareholder
  • Stock certificate number
  • Number of shares owned
  • Origin of share transfer (where did this stockholder obtain his/her shares?)
  • Amount paid for transferred shares
  • Date of transfer
  • To whom shares are transferred (the person receiving shares from the person on line 1.)
  • Certificate numbers
  • Number of total shares
  • Stockholders' balance of remaining shares
  • Value of stock transfer tax stamp affixed

The stock transfer ledger is often used when shares are sold, transferred, surrendered or lost. Keep in mind that each certificate can be issued for more than one share of stock.

The stock transfer ledger, as well as the corporate seal and most of the company's other important documents, are often held by the corporation's secretary. This is to ensure the safekeeping of the ledger, which holds important ownership information for the company.

Feel free to contact us at any time to obtain more stock certificates.

We will ask what number certificate you would like us to start with for the new order, as each stock certificate is individually numbered. We can also provide you with a full Corporate Kit, corporate seal or customizable templates at any time. Just call 800--345-CORP.

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

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There are 3 comments left for Everything You Need to Know About Stock Transfers

Teri Kinsella said: Wednesday, July 11, 2018

How long does it take for the State of Delaware to issue stock certificates once they are requested?

HBS Staff replied: Wednesday, July 11, 2018

The state of Delaware does not issue stock certificates but they are included in our Standard Package https://www.delawareinc.com/ourservices/standard-package-domestic/.

For more information, feel free to call us at 1-800-645-2677 during regular business hours Monday - Friday EST.

Juan Marcos Tripolone said: Tuesday, March 20, 2018

Do we have to pay taxes for stock transfers for Delaware General C Corporations? How much? What do we have to fill in the "Value of stock transfer tax stamp affixed" field? Where do I get the stamp affixed?

HBS Staff replied: Friday, March 23, 2018

We're sorry, but these questions are best answered by your tax advisor or CPA.

Greg Garner said: Tuesday, January 30, 2018

For a Delaware Corporation, can the Corporate Stock Ledger be used instead of the stock transfer agents records when conducting a shareholder vote?

HBS Staff replied: Tuesday, January 30, 2018

It is up to you and your Board of Directors if you want to use an alternative form of record keeping. Just be sure all are in agreement.

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