Attn: DU Accountants or Lawyers

[JM]

I have a question on Subchapter S Corporation share value. At startup, is there any minimum value for shares owned on a per share basis? I can't find any information on this, but it just seems odd to me that I can form a corporation, say it has 1000 shares (for example) and have no value per share.

Thanks,
JM

[Boom_cha]

1. It varies from state to state

Some states requre a par value but most do not, as I recall. I recommend the book Incorporate Your Business from Nolo Publishing (www.nolo.com). It has all the info you need for all 50 states.

Disclaimer: I'm neither a lawyer nor an accountant but I do have an S corp.

[ajacobson]

2. I'm not an accountant

but I am an accounting student. The par value of the corp's stock is stated in the corporate charter. In some states, stock cannot be offered for less than it's par value. No par stock can have a stated value, which serves as a valuation figure for establishing the legal capital of the corp. The proceeds of stock issued at no par without a stated value all goes into the legal capital amount of the corp. Some states do not permit the corp to issue dividends that would reduce capital to below that of the established legal capital amount. Some state tie their registration fee to that of the par or stated value (with assigned value for no par no stated value stock) Michigan doesn't do that, their fee is based on total number of shares offered.

Aren't you sorry you asked?