When you create your startup company, it is often with the expectation that your business will grow both financially and in size, eventually being able to issue shares as a private company.
For that to happen, you may need investors and partners to help you at the start of your business. Investors, partners, and individuals who all contribute either skills, capital, ideas or assets can effectively boost the growth and development of your company.
In return for their added value, it is often a common and appealing option to give these individuals shares in your Canadian startup instead of paying them in cash.
To do so, you will need to consider the value of your shares before you even incorporate your business as you will need to state your authorized shares at the time of incorporation.
The main question is: how do you put a value on your shares? We provide you with answers with this overview on the basics: what to consider, what you should know, and some general methods on how to determine that price value.
