What is par value?
July 18, 2008
Par value is the minimum price per share that shares must be issued for in order to be fully paid. I typically recommend that par value be set at $0.001 or $0.0001 per share. Thus, if a founder purchases 8,000,000 shares of common stock, the minimum price that the founder has to pay is $8,000 at $0.001 per share or $800 at $0.0001 per share. Par value can even be set lower, such as $0.00001 per share, in order to minimize the amount paid for founders. Some states, like California, allow for no par value shares.