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You’ve set up your new Delaware corporation, obtained the EIN (also known as a Federal Tax ID Number), opened the bank account, elected the Board of Directors and appointed the officers—what’s next?
Often, the most exciting time for a new Delaware corporation is when the day arrives to issue stock certificates.
Whether you’re looking to raise capital, go public or attract investors, traditionally, ownership of the corporation is displayed by issued shares of stock.
When you file your Delaware corporation with us, we provide the tools necessary to help with the issuance of shares. A Deluxe Corporate Kit is Included in our Standard package; the Corporate Kit includes customized stock certificates, a stock transfer ledger and a handheld corporate seal.
Each stock certificate is individually numbered and includes a space for the number of shares, the name of the new shareholder, the signature line for the president and corporate secretary authorizing the shares and the designated area in which to place the corporate seal. This information can be handwritten, or input as a PDF, then printed directly on the stock certificate.
The stock transfer ledger will help with the documentation of the transaction, including the name of the shareholder, the address, the time and date of the sale, the certificate number, the number of shares issued, the issuer of the shares and the amount paid.
Keeping up-to-date records on both the issued shares and the shareholders is invaluable when it’s time to file the annual report for the Delaware Franchise Tax. It can also help settle any disagreements, should any disputes arise in the future.
The handheld corporate seal, which is the official signature of the corporation, includes the company name, the year and the state of Delaware. We now also include a digital corporate seal for all our clients as an alternative, which is a point-and-click version of the traditional handheld style, allowing for it to be on multiple computers in different locations.
If you have questions about stock certificates for your new Delaware corporation, contact any of our friendly customer service representatives today via phone (1-800-345-2677), email or live chat.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.
There are 2 comments left for Issuing Stock Certificates for a Delaware CorporationRichard said: Thursday, November 29, 2018
I recently set up a Delaware corporation with your company. You guys are AWESOME! Super fast and even set up two classes of stock. I highly recommend working with you. MY Question: I understand that all stock transactions need to be entered into the Stock Transfer Ledger. Do these transactions also need to be registered with a government agency? Thanks RichardHBS Staff replied: Thursday, November 29, 2018
Richard, thanks for the kind words and recommendation. We take customer service very seriously!
Stock transfers do not need to be filed with the state. They can be maintained internally by the corporation. For more information, check out: https://www.delawareinc.com/blog/everything-you-need-to-know-about-stock-transfers/Ricky Roodal said: Friday, March 9, 2018
Please forgive my Ignorance . How can I go about checking the authenticity of a Stock certificate from a company under the laws of Delaware. Honestly I think I was scammed but I am praying I was not Company EMC Development CorpHBS Staff replied: Friday, March 9, 2018
We cannot answer this for you, unfortunately. Perhaps contact an attorney or financial advisor, or even the SEC.