Once a company has been incorporated it will issue either voting shares or non-voting shares. Some companies may have different classes of shares with different rights, including who will receive assets if the company dissolves or which shareholders will receive profit priority. Typically, when DNC Integra Lawyers incorporates a company we create a complex share structure that permits future reorganization.
Common voting shares are the most often used shares when business partners are all contributing money, assets or time.
Some business owners will also issue non-voting shares or preferential shares to employees or family members who want to share some of the company profit but do not want to share control of the company.
Preferential shares entitle shareholders to the first share of profit, generally at a fixed rate of return. Most companies will issue a small number of shares at a cent or a dollar each to start.