How to Assign Shares to Shareholders
Businesses need capital or funding to operate and grow. Some business owners apply for business loans or use business credit accounts to access funding. Another option involves soliciting help from investors and assigning shares to them. As a shareholder, investors then own stock, or a percentage of the corporation's assets.
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Instructions
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Decide how much you need from an investor. Have a figure in mind before approaching potential investors. Assess why you need funding, such as for acquiring a new location, developing a new product or promoting your product or service. Be prepared to show your investor a business plan that describes your short- and long-term goals and how you plan to allocate funds.
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Discuss ownership with potential investors. Before you can assign shares to your investors, determine how much ownership you're willing to give up. For example, to attract potential shareholders, you might offer 40 percent ownership of the corporation in exchange for capital.
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Set a price for each share. For example, if you need $100,000 from an investor, you can agree to assign this person 10,000 shares of your company for $10 per share.
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Speak with your company's attorney to inform him about any new shareholder. Have the company attorney prepare a stock certificate that certifies a shareholder's ownership in the company and specifies the number of shares he owns.
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