Par value is a nominal value assigned to a share of stock in a company’s charter, often a very small amount (e.g., $0.00001), which can affect legal capital and certain accounting entries. In startup formation and financings, Par Value is typically set low to minimize initial purchase price and tax implications for founder stock, and Par Value is distinct from fair market value or issue price.
If a startup issues 8,000,000 shares with a $0.00001 par value, the minimum the founders would have to pay for those shares is $80.
