Shares – why do you have them?

For Corporations, shares designate ownership and the number issued to each individual gives the % ownership. Some shares can be left in treasury un-issued; but if not issued in some states like DE it may affect the annual fee. You should talk to your CPA about the effect in the state of formation.

For LLCs, units designate ownership and the number issued to each individual gives the % ownership. All units should be issued.