Issuing Stock Certificates for a Delaware Corporation

You’ve set up your new Delaware corporation, obtained the EIN (also known as a Federal Tax ID Number), opened the bank account, elected the Board of Directors and appointed the officers—what’s next?

Often, the most exciting time for a new Delaware corporation is when the day arrives to issue stock certificates. Corporate stock certificates represent an individual's ownership of a specific number of shares in the company.

Whether you’re looking to raise capital, go public or attract investors, traditionally, ownership of the corporation is displayed by issued shares of stock.

Our Delaware Stock Certificates

When you file your Delaware corporation with us, we provide the tools necessary to help with the issuance of shares. A Deluxe Corporate Kit is Included in our Standard package; the Corporate Kit includes customized Delaware stock certificates, a stock transfer ledger and a handheld corporate seal.

Each Delaware stock certificate is individually numbered and includes a space for the number of shares, the name of the new shareholder, the signature line for the president and corporate secretary authorizing the shares and the designated area in which to place the corporate seal. This information can be handwritten, or input as a PDF, then printed directly on the stock certificate.

Are Stock Certificates Required?

For the most part, physical stock certificate are no longer mandatory in every jurisdiction. In modern corporate practices, electronic record-keeping and book entry systems have become more prevalent. Nevertheless, you'll find that some individuals still request a physical stock certificate.

The stock transfer ledger will help with the documentation of the transaction, including the name of the shareholder, the address, the time and date of the sale, the certificate number, the number of shares issued, the issuer of the shares and the amount paid.

Keeping up-to-date records on both the issued shares and the shareholders is invaluable when it’s time to file the annual report for the Delaware Franchise Tax. It can also help settle any disagreements, should any disputes arise in the future.

The handheld corporate seal, which is the official signature of the corporation, includes the company name, the year and the state of Delaware. We now also include a digital corporate seal for all our clients as an alternative, which is a point-and-click version of the traditional handheld style, allowing for it to be on multiple computers in different locations.

If you have questions about how stock certificates for your new Delaware corporation, contact any of our friendly customer service representatives today via phone (1-800-345-2677), email or live chat.