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so typically what I room for authorized shares and so typically that will be a fairly high number the the sort of the standard is 10 million shares as authorized shares in the certificate of incorporation and one thing to understand is that authorized shares are not the same as issued shares so just because it says in your certificate in corporation that you can often that you have authorized capital of ten thousand shares Im sorry 10 million shares that doesnt mean that youve already issued those shares and you have shareholders holding 10 million shares and typically when you start a company you will only issue a certain portion of those 10 million shares to the founders in the company and when I say that you need to leave some room what you need to leave room for is a stock option plan and a potential future financing where you know an outside investor comes into the company and is going to invest in the company so you know often investors will come in and theyll want preferred
