When you have worked to build a great business, growth is the hard evidence of your efforts. However, along with growth comes certain changes that may apply to your specific business entity. CBA Direct is committed to assisting businesses who strive to reach their full potential stay compliant by filing the necessary documents as your company grows. One of the more common elements of growth is expanding or changing various aspects of your corporations. Typically that requires filing a Share Amendment document.
Corporations and LLCs that decide to change either the value or number of shares of its stock are required, by law, to update that information in their Articles of Incorporation or Certificate of Authority. You do this by filing what is called a “Share Amendment” and this must be filed in the state of incorporation.
Keep in mind that when you change either your number of authorized shares or stock value it could change the amount of your state franchise tax. And, further, some states even require you to file a Share Amendment if you just want to change your corporation’s name (even if you are not making changes to the price or number of shares).
It is critical that you contact your personal tax adviser or legal counsel prior to making any decisions regarding your business. Once you have, be sure to contact one of our highly trained professionals at CBA Direct to further assist you in filing the proper documentation for your business entity.