[GNC] Bootstrapping and Company Ownership.

[Jean-David Beyer]

On 1/15/19 5:44 PM, jason wrote:
> I will issue a common stock, but I am not eligible to own a legal entity
> until 21 years old. It's a dillema, it does sound I loan capital to the
> business as of right now. Is it okay to issue a common stock with par value
> of $100. Although, I don't have a legal entity?
> 

In the mid-1959s in New York State, a friend of mine and I wanted to
start a company and we were both under 18 years of age; we were still
high-school students. We did not want to issue stock, but there were
other problems:

1.) Banks would not allow us to have a checking account until at least
one of us was over 18.

2.) We had to file a declaration in City Hall called a Certificate for
Doing Business Under An Assumed Name, in which we had to state that we
were (legal) infants. An attorney was required to do this, and a fee
paid to the county clerk to file it.

3.) To set up a legal corporation, and issue stock (not listed on a
stock exchange), we needed a board of directors all of whom were adults
(i.e., over 21 years of age). A corporation like that was authorized to
issue up to 200 shares of stock, although the board of directors, if
authorized by a majority of stockholders, could authorize the issuance
of more shares. We never did set up the corporation.

I do not know if any of that applied in other jurisdictions, and I do
not  know if the laws are still the same as 50 years ago: I pretty-much
doubt it.


-- 
  .~.  Jean-David Beyer
  /V\  PGP-Key:166D840A 0C610C8B
 /( )\ Shrewsbury, New Jersey
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