Authorized Shares
The maximum number of shares your company's legal formation documents allow it to ever issue — a ceiling, not the number actually given out yet.
Quick Answer
What happens if we try to grant more shares than we're authorized to issue?
You legally cannot — any grant beyond your authorized share count is invalid until the company formally amends its charter to increase the authorized amount, typically requiring board and sometimes stockholder approval.
- Authorized shares are a hard legal ceiling, not a guideline
- Increasing this number requires a charter amendment
- Plan authorized shares with future dilution headroom in mind
The Lovie Advantage
Lovie tracks authorized versus issued shares separately, flagging before you get close to the ceiling, not after.
See how this connects to Issued Shares. For the formal definition, see the IRS's overview of the limited liability company (LLC).
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