The Necessity Of Corporate Booklets And Share Certificates Even For One Owner
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Published: August 20, 2012
Are you the sole owner of a Florida corporation? Once you incorporate a business in Florida, plan to issue share certificates and develop a corporate booklet, even if you are the only owner. If you plan to ever sell your business, both corporate booklets and share certificates can be essential components to transferring your business to a new owner. These documents are critical to the success of your business.
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Also known as corporate kits or corporate books, this is one of the most important marketing pieces that your company can develop. This formal booklet describes your business, including the company’s history, what your company does, and other important information. Corporate booklets are a high impact way to advertise to potential investors, business partners, and other third parties.
Even if you never plan to show the corporate booklets to anyone outside the company, developing this content can prompt you to think about your business in terms you hadn’t considered before. The legal requirements to incorporate a business in Florida are only the first steps on the way to business success; developing tools such as a corporate booklet can help you take your corporation to the next level.
Also known as stock certificates, a share certificate is a legal document that is proof of ownership of shares. You should not conduct business as a corporation until you have issued shares of stock; the share certificates are evidence that you have done so. Issuing stock certificates is a requirement of doing business as a corporation. In order to qualify for the legal protection offered by corporate status, it is necessary to conduct business as a corporation does, which means that your corporation must issue stock. Failure to do so after you incorporate a business in Florida could bring the corporation’s status into jeopardy, which could leave you personally liable for the company’s actions.
These certificates formally divide up ownership interests in the business, which is important even if you plan to be the only owner. If you ever decide to sell part of the business, you can do so by selling share certificates.
As a Sole Owner, Why Do You Need Them?
Both corporate booklets and share certificates are important marketing tools that can help you gain investors and help your business grow. If you ever decide to sell all or part of your business, corporate booklets and share certificates can make it easier to do so.
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