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In-Depth Incorporation FAQ

How do I know how many shares I should authorize?

It may be wise for the company to authorize in its articles more shares than it plans to issue. This will allow the company flexibility to issue more shares if a second round of financing is required. Naming a small amount of authorized shares in the articles will limit the company's ability to do this. The number of shares authorized can only be changed by officially amending the articles with the Secretary of State.