Emerging Enterprise Center Blog - Commentary and Analysis For Entrepreneurs and Startups

Let’s start with an assumption: You are forming a company with the intention of obtaining venture financing within a year. (I will hold aside the probability of such a thing actually occurring.) If you followed my posts on Delaware franchise tax and par value you know that the number of shares you pick can affect your franchise tax – but it is not likely to have much of an effect if you use the so-called alternative calculation. Let’s also be clear with one definition. "Authorized shares" are all the shares a company may issue – not just the ones that... More