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In business sales, clients often assert ownership by stating they or their spouse own the company. However, attorneys will require proof of ownership. To demonstrate ownership in an LLC or corporation, traditionally, a stock certificate is used. This certificate includes the company name, shareholder name, number of shares, issuance date, and an authorized signature. The holder retains this certificate as proof. When selling, the back of the certificate contains a stock power form that the seller fills out and signs to transfer shares to the buyer. This formal proof is essential for any business transaction involving ownership transfer.
