Some states have limits to how many shares a corporation can have and others have franchise tax rules based on the amount of shares and or the value of each share. But I do believe that for small corporations with one or just a couple of shareholders where there isn't intention on acquiring investment capital a small amount of authorized shares is recommended with a low par value, such as 1500 shares at $1. This amount is low enough not to impose any increased franchise tax.
Nov 26 2013 02:59 AM
So,I do believe that a small amount of authorized shares is good with a low par value.