How do startups usually allocate shares ?

The Gold Standards setup for a Technology Startup is to authorize 10,000,000 shares of common stock for the formation of a startup. From these 10,000,000 shares, 8 millions are usually distributed between the owners according to how they want to split up their percentage ownership.

The other 2,000,000 (2 Million) are reserved in the treasury for future employees, advisors, and sometimes for early investors. Remember, before issuing any shares to non-founder employees, you will need to set up a company stock plan. It’s the law! our in-house lawyer can help you with this at lawyer@stellarformation.com