hi everybody this is Erin Jennifer
Laughlin and we're going to take a
minute or so right now and talk about
issuing stock
I talked to lots and lots of business
owners all around the country and it's
amazing to me how many people have never
issued themselves stock in their
corporation or issued the membership in
their LLC and the main reason that they
haven't done it is that they don't know
how to do it and they're kind of afraid
to make a mistake so let's talk about
that for just a second you know when you
get your corporate record book that nice
little leatherette book that's got the
gold seal on the side of it with the
company name on it we go through it we
look through all the different tabs we
sign we're supposed to and then we get
to this place where there are these
beautiful engraved certificates and they
have your company name on them and they
look so cool and we look down at that
certificate and we like it but we don't
know what to do with it so we flip the
tab to the next place and we skip over
it
issuing shares is not complicated and it
doesn't have to be scary so I'm going to
tell you exactly how you do it right now
first of all shares can be issued in an
S corporation they can only be issued to
a real person so the owner of an S
corporation has to be a US person it
can't be a company it can't be an LLC it
can't be a limited partnership it can't
be any of those sort of things the only
individual that can own shares of an S
corp is a real person and it's got to be
an American person if it's an American
company so that makes it pretty easy it
can just be to whomever the one is that
put the money in for the S corporation
it's probably you the one that's
listening to this video in a
c-corporation there's a lot more
flexibility c corporation shareholders
can be a natural person but it can be a
person from anywhere in the world it can
be a fund or another company it can be
an LLC it can be a limited partnership
it can be a living trust
there's just pretty much any other
entity can own shares of a C corporation
and here's how you issue those shares
first of all share ownership is based on
the amount of money that was cat
invested into the company or the
capitalization of the company so
whatever percentage of capitalization is
put in that's the number of shares that
come back out to that investor okay and
then you simply take the stock
certificate you write in there kind of
like a cheque just like writing a cheque
you put in who is getting that
certificate you date it you it and then
there's a ledger in your in your
corporate record book
that's kind of like a check ledger and
you're right down share number one two
three four five went to this individual
on this date and that's it it's really
that simple
you take the thing you issue the share
you mark it down in the ledger and you
close the book and put it away there
doesn't need to be any fear what you do
need to fear is the idea of not issuing
ownership not issuing membership because
until you've gone through that exercise
and given the membership certificate or
the stock certificate you are not a
shareholder and you want to be a
shareholder of your business right
that's one of the reasons you set up
that corporation or LLC in the first
place so don't be afraid take the step
and issue that ownership and if you have
questions feel free to give us a call
here and we'll walk you through the
whole process