How to Issue Corporate Stock

How does a corporation issue stock?

Issuing stock isn’t much different from drawing up a contract for any kind of sale. In some sort of written document—it could be a bill of sale or stock certificate—the issuer establishes a price for each share and documents the amount of shares being bought, along with the name of the shareholder and the corporation. A director or officer approves the sale with a signature. If the director or officer is also the shareholder, it would be ideal to have the document signed by a witness.

So why use a bill of sale instead of simply a stock certificate? Stock certificates are formal (and pretty), but a bill of sale has more room for details. This is especially useful if the corporation isn’t being funded solely with cash. If a shareholder wants to fund the corporation with assets (like business vehicles or personal tools needed to work in the business), this can easily be addressed on a bill of sale. Also, there’s no reason you can’t have both a bill of sale and fancy stock certificates.

What should a bill of sale for issued stock include?

A bill of sale isn’t a particularly complicated document. However, there are certain details that are crucial to include. Our free bill of sale for issued shares of corporate stock includes the following essential information:

• The name of the shareholder

• The number of shares being purchased

• The price per share

• The name of the corporation

• The total investment value

• Any assets and their value (if being used to purchase shares)

• Shareholder name and signature

• Director or officer name and signature

• Witness signature (if director/officer is also the shareholder)

• Dates of all signatures

Our free forms are great, but we can do a lot more. We offer registered agent service in every state for $125 a year. You can hire us for annual report compliance on behalf of your corporation. We also form corporations for $100 plus state fees.