So, inside of the bylaws is where you specify who gets how much stock of the company, correct?
In this audio snippet, you'll hear about:
- You can determine who has done initial allocation, how distribution follows.
- Once you've created your bylaws, filed articles of incorporation, obtained EIN, is when you issue your shares of stock to the members of the Incorporation. Is there anything special that needs to be done?
Audio Transcript
Travis:
OK. That makes sense. So inside of the Bylaws is where you specify who gets how much stock of the company, correct?
Jake:
Within the Bylaws, yes. You can determine who has done the initial
allocation, how the distribution is going to follow; that's how you
really will be able to lay all of that out.
Travis:
OK. So once you've created your Bylaws, filed your Articles of
Incorporation, and obtained your EIN, is when you issue the shares of
stock to the individual members of the corporation.
Jake:
Right.
Travis:
And how does that process work? Is there anything special that needs to be done?
Jake:
Well, usually there's a meeting that happens, where the directors or
the initial shareholders would approve the assigning of the shares.
That is usually put down in writing, and then you will make up the
stock certificates. The president or secretary usually signs the stock
certificates. You'll put the company seal on there, and write out the
number of shares that that person will receive.
You
will then record that transaction in the ledger, in a stock ledger, so
that you're able to keep track of the stock shares throughout the
history of the company –– who's got what shares and how many shares
they've got.
Travis:
OK, and that's what makes it official.
Jake:
Yes. Having that certificate is what makes it official, that "Yes, I own these shares."
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