Entrepreneurship & Small Business

Share issuing template for small business?

  • Last Updated:
  • Mar 14th, 2019 10:08 pm
[OP]
Member
Oct 28, 2015
312 posts
38 upvotes
Nobleton, ON

Share issuing template for small business?

I am about to give my dad 2% ownership of my small incorporation, but realized that I haven't issued any common shares, should I do the issuance first? any templates? so technically I issue my self 98 common shares and my dad 2 common shares? is that how it works? thank you
2 replies
Deal Addict
User avatar
Aug 15, 2015
1478 posts
188 upvotes
Markham, ON
Just write down what you want to do. Put it in a binder, if you have an accountant, speak to that accountant to make sure your annual goveRbmwnt forms and your dad's tax form is correctly completed.

Then when your company is worth something and you are selling, get a lawyer to write up the proper paperwork.

Hopefully, you are still alive and well when your company is successful and making all the moolah.

Make sure you dad knows how much 2% of your company cost. Is your dad paying you or your company to get his shares?
Deal Addict
Jul 3, 2017
3757 posts
2612 upvotes
The regulations governing share issues are exceedingly complex, and primarily based on the idea that arm's length parties are going to be purchasing and trading shares in the business and need to have their ownership rights defined and protected.

If what you have in mind is a simple agreement to share ownership of the company within the family, just write it down like Poppwl said.

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