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LegalCornerTM - Corporations F.A.Q.'s

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Q.Does the corporation have to issue stock?

A.A corporation should issue stock to its owners as soon as practically possible after incorporation. When a corporation fails to issue stock, no individual owns the corporation. Thus, for the corporation to have owners, shares must be issued. While most states have created small business exceptions and exemptions from registering a stock issuance with the State or with the SEC, it may be wise to contact the appropriate entity to determine whether you must file a notice of stock issuance on the state and/or Federal Level. In California, a notice of stock issuance must be filed with the Commissioner of Corporations. For more information or help regarding your corporation's stock issuance, contact a local attorney.

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