What is Par Value? Definition, requirements, and how it applies to your business formation. Learn everything about par value for LLCs and corporations.
# Par Value
Par value is the minimum price at which a corporation can issue its stock, as stated in the Articles of Incorporation. It is a legal concept with little relation to market value. Most startups set par value at $0.0001 or $0.00001 per share to minimize franchise taxes and allow stock to be issued to founders at negligible cost.
Setting par value too high increases Delaware franchise tax under the Authorized Shares Method and makes it expensive to issue founder shares. The standard for startups is $0.0001 (one-hundredth of a cent) per share.
Lovie sets par value at $0.0001 by default for C-Corp formations — the standard that minimizes tax liability while satisfying Delaware corporate law requirements.