It is my understanding that many tech startups form their C Corp in Delaware and issue 10 million common shares for various reasons.
My question has to do with Par Value per share. Most startups seem to issue each share at $0.0001 which equates to $1000 in this scenario. Since this price has to be paid in real money ($1,000) my question is what is the least amount Delaware allows the par value of a share to be?
For example, could one issue their 10 million common shares at $0.00001 instead of $0.0001? This would total $100 rather than $1000 of which I am assuming has to actually be paid to the corporation. Assuming there are no assets, no IP yet, no funds raised yet, nothing of worth to the new corporation, what is the minimum the state of Delaware allows the par value of a share to be? Is there one?
Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.
I can't give you a direct answer, but I know when I researched my company poking around the secretary of state websites is your best resource. You can get to the laws of forming a corporation from there. Go to Deleware and click on the
"Deleware Laws Online". You are looking for information under the Title 8 section of the site. It will have general guidelines and should indicate your max stock issuance, stock types, and min values.