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How many shares should a Delaware startup authorize?

Incorporation & entity structure

10,000,000 is the convention. It gives room for an option pool and future rounds while keeping per-share prices low enough for clean option grants.

Authorizing far more raises your franchise tax under the default method without any benefit. The assumed par value method usually brings the bill back down.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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