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Multi Class Shares?

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Old 01-09-2008, 10:52 AM
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Default Multi Class Shares?

I am an IT consultant, I've incorporated a company so I can contract my self out. Future plans involve growth, but for now its just me in the company. While creating the certificate of formation, there was a question about how many shares do I want to create in each class. I decided to go with a single class of 1000 shares at $1 a share; I was told that was the minimum to have when incorporating in Texas. Meaning that I need to have at least $1000 in corporate bank account. Although, I'm not considering selling any shares, at least not any time soon.

What is the benefit of having a multi class shares in a corporation?
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