New York Stock Structure

When setting up a New York corporation, one of your biggest considerations is the stock structure; that is how the ownership pie of your New York corporation will be divvied up.  Besides coming up with the number of shares your corporation is authorized to issue, you must also set up the par value (or minimum value) of each share of stock.  The number of shares of authorized stock and the par value will also have a direct effect on the amount of initial fees you pay to the Department of State for the filing of your new corporation.


Below are some details to help you calculate the best stock structure and related total initial fees to the state to form your New York corporation.



How to calculate the Minimum Tax

There is a minimum tax of $10 on shares that the corporation is authorized to issue which is paid as part of the Initial Fees.  Without going above the minim $10 tax, the New York corporation is authorized to issue a maximum of 200 shares at no par value.  Corporations wishing to be authorized to issue more than 200 shares at no par value; or if the total capitalized value of the number of shares with a par value exceeds $20,000, the initial tax will be more than $10.


Calculate Tax If No Par Value

Tax = 5 cents per share of no par value stock


Calculate Tax If Par Value

Tax = 1/20 of one percent (.0005) multiplied by the total capitalized value of all shares (i.e. par value X # of shares with stated par value). Example: 200 shares with a par value of $100 per share = $10 tax


Calculate Initial Fees

Total initial state fee = $125 + the tax (minimum of $10) or a minimum total of $135 for a New York Corporation.


Is “Sales Price” related to “Par Value”?

New York Corporation Shares that do not have a par value may be issued or sold at any price, while shares which have a stated par value cannot be sold at a price which is less than the stated par value.


Most corporations (New York and in other states) which are formed by are done so with 200 authorized shares no par value.


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