What is Stated Capital
What is Stated Capital?

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What is Stated Capital?

Corporations may sell shares of stock in order to raise capital. Most states require new Corporations to specify the number of Authorized Shares of Stock which the Corporation may issue in their Articles of Incorporation.

Corporations may sell some of their stock directly to purchasers. Stock then may be sold from one purchaser to another through brokers on the open market. Corporations may also issue stock to employees as a form of compensation.

Most Corporations issue stock with a Par Value. Par value is usually a small amount, in many cases less than a dollar. When the Corporation sells stock directly to purchasers, those purchasers usually pay an amount greater than the Par Value.

Stated Capital is the total Par Value of all Corporate Stock which has been sold by the Corporation. Paid-in Surplus refers to the difference between the price at which a share of Corporate Stock was sold minus the Par Value of the stock.
CORPORATE GLOSSARY
 
Administrative Dissolution
Agent for Service of Process
Apostille
Apportionment
Articles of Incorporation
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Assumed Name
At Will LLC
Authorized Shares
B Corporation
Benefit Corporation
Board of Directors
Business Dissolution
Business Entity
Bylaws
Certificate of Existence
Certificate of Status
Certified Copy
Close Corporation
Common Stock
Conversion
Corporate Bylaws
Corporate Name Reservation
Corporate Stock
DBA
Disregarded Entity
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ESOP
Excise Tax
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Foreign Qualification
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Good Standing Certificate
Incorporator
Involuntary Dissolution
IRS Form 966
ITIN
Limited Liability Company
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Liquidation
LLC
LP
Majority Shareholder
Meetings
Merger
Nexus
Non-Stock Corporation
Nonprofit Corporation
Obligated Member LLC
Organizer
Paid-in Capital
Paid-in Surplus
Par Value
Personal Service Corporation
Preferred Stock
Privilege Tax
Professional Corporation
Professional Service
Proxy
Registered Agent
Registered Office
Reporting Requirements
Revocation
S Corporation
Series LLC
Service Mark
Shareholder
Sole Proprietor
Stated Capital
Statutory Agent
Stock Certificate
Term LLC
Trade Name
Trademark
Trust
Trustee
Winding Up
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