Were too many shares authorized for your Delaware corporation at its inception? Were too few authorized? If so, you may want to know how to amend stock for your Delaware corporation.
Often after the corporation is formed, clients will come to the conclusion that they have authorized far too many shares of stock than is needed, or in other cases, not nearly enough. Maybe things are not taking off as quickly as you would've hoped, or you're just not ready to bring in investors, and you need to amend the certificate of incorporation, reducing the number of shares. On the other hand, hopefully, the company has grown far better than expected—you're ready to go public and you need to authorize more shares. Whatever the reason may be, Harvard Business Services, Inc. can help.
Harvard Business Services, Inc. can assist with filing the stock amendment to update the authorized shares of stock for your Delaware corporation. Harvard will prepare a Certificate of Amendment for signature, and send it to you via fax or email. Once the Certificate of Amendment is signed, the document will need to be returned by fax or email to Harvard Business Services, Inc. The Certificate will then be filed with the state of Delaware later that day. The state typically takes two to three business days to return the receipt of filing. As soon as the approved amendment is available, we will forward a copy to you for your records.
Please note that your annual Delaware Franchise Tax payment may be affected by a stock amendment since the tax is determined by your authorized shares of stock. A Delaware corporation with 5,000 authorized shares or less (aka a minimum stock company) will pay the minimum Franchise Tax of $225 per year. Corporations with 10,001 shares or more will typically pay a minimum Franchise Tax of $400 per year, depending on gross assets and issued shares.
Please give us a call today (800-345-2677) if you have any questions about amending the stock for your Delaware corporation and how it will affect your Delaware Franchise Tax.