Obtaining a Stock Certificate:
The simplest way to get a stock certificate today is to ask your broker. If you bought your shares through a brokerage firm, it will have an account with your name and the number of shares you purchased. To obtain a stock certificate, request information from banks and other institutions that control the decedent’s assets. Transfer assets to the name of the estate. Pay debts of the decedent. Collect claims of the decedent.
Stock Certificate Details and Process:
A stock certificate proves a shareholder’s ownership in a company. Being a stockholder entails benefits and risks. Investors obtain certificates from the company’s transfer agent or broker, for a fee. If you can track the issuing company and get its identification number, reach out to a transfer agent, complete a transfer form and sell your old stock certificate. Under a standard four-year time-based vesting schedule with a one-year cliff, 1/4 of your shares vest after one year. You have to ensure investors sign the certificates and keep track of shares in a ledger book or computer.
LLC Ownership and Stock:
Limited liability companies (LLCs) do not have stock, nor can they issue it. LLCs offer entrepreneurs benefits over corporations, depending on your particular business needs and goals. LLCs do not have shares. Unlike corporations, LLC members have interests referred to as ‘membership interests’ or ‘units.’ These units represent the ownership stake of individuals or entities in the multi-member LLC. Each member’s ownership is determined by the percentage of units they hold, typically outlined in an operating agreement.
Holding Stocks in an LLC:
LLCs cannot issue stock. Only C-or S-corporations can issue stock. LLCs offer entrepreneurs benefits over corporations. LLC members are not personally liable for LLC debt. LLCs must be 100% owned at all times as they have no treasury units or stock. Typically, “membership units” or “member interests”, not “stock”, designate LLC ownership shares.
Purchasing Stocks as an LLC:
Like individuals, LLCs can buy stocks. LLCs register by filing articles of organization with the Secretary of State, establishing information like: name, address, and investment details.
LLCs issuing Bonds:
LLCs can issue debt securities such as bonds or debentures although the process may be more complicated than issuing stocks. At the core of an LLC’s structure are its members, who can be individuals, corporations, or even other LLCs. The ownership structure is highly flexible, with members typically holding a share of ownership expressed as a percentage.