Par value
In accounting, par value means the nominal value per share a charter assigns — often a fraction of a cent. Delaware lets stock be issued for any consideration not less than par; on the books, shares × par goes to the stock account and the rest of the price to additional paid-in capital.
Authority: 8 Del. C. §153 (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- Cap tableFounder stock, vesting and the 83(b) electionAuthorized versus issued shares, par value, a restricted stock purchase at $0.0075, four-year vesting with a one-year cliff, and the 83(b) election — on Northwind's founders.10 min
- Cap tableEquity on the books: stock, SAFEs, notes and stock compThe entries behind every raise: stock at par and APIC, a SAFE as a liability and its conversion, a note's interest, and stock-based compensation — in Northwind's cents.10 min
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
- First-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
- How to account for SAFEs on your balance sheetA SAFE is cash today and shares later. Why it usually sits with liabilities, how the cap and discount set conversion, and what to book at the priced round.
- Startup tax deadlines by month for a C-corpFederal tax deadlines for a calendar-year C-corp, month by month: W-2s, 1099s, Form 941, Form 1120, estimated taxes and Delaware franchise tax.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- price
- value
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
2Cards
Family specAlso in Equity & financing
Defined in Lexicon. This page is generated from that document, so the two can't disagree.