How do you determine how many shares your company has? And how much their worth?
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Say you have a small business. How do you determine how many shares of stock your company has? And how do you know how much their worth?
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Answer:
As far as determining how many shares your company has, it would depend first on the type of legal organization the company took when it was first formed. If it is an LLC, there are no shares, and thus no worth (it is all calculated by % - if you are the sole owner, you own 100% of the company). If the company was formed as a Corporation (C or S status), the company then would have a set number of shares. That information would have been in the initial filing with your state's secretary - either div. of taxation/revenue or secretary of state. If you do not have a copy of that, your accountant/atty who created the entity probably should have a copy of the original form filed. The value of these shares again are only based on what someone would be willing to pay to buy into the company. If you are a sole proprietor, however, you have no shares, and again, hold 100% of the value. You cannot sell shares, not a percentage of ownership, since a sole proprietor only has 1 owner - by definition, cannot have more than 1. Hope I helped! J
Shanizze... at Yahoo! Answers Visit the source
Other answers
with small business you can only sell a percentage of your business and there value is only worth what someone is willing to pay for them. Because they are investing in you more than the business itself. You could have a business that is worth $1 million dollar to sell outright. But the current owner a drunk, gambles, cannot read or write and all round not a nice guy. The value of what someone will pay for a partnership will go down since being a small business you are liable for all debt they can come and take you home and everything. Try franchising if you business is going well.
Tubby
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