You're off on a few details, but mostly on the right track. You need to do a bit light reading: Start with legal-dictionary's definition of Equity[0] and Autho

You're off on a few details, but mostly on the right track. You need to do a bit light reading: Start with legal-dictionary's definition of Equity[0] and Authority[1], and Agency[2]. That gets you the answer on where the authority to issue certificates of any sort comes from. Then apply those entire pages to private ownership. Documents for private corporations are drafted in private, using private authorities, unlike public corporations registered with a state. they can issue shares privately, as well, provided they have an underwriter. Property ownership (or rather, those entities that own the property) is King in this new economy. Many (All?) YCombinator companies use Delaware as their authority. (We could apply all of the above to how Corporations are now Persons, but that's a rabbit-hole). Bottom Line: everyone should incorporate. become a private equity firm. 0. http://legal-dictionary.thefreedictionary.com/Equity http://legal-dictionary.thefreedictionary.com/Equity 1.http://legal-dictionary.thefreedictionary.com/authority http://legal-dictionary.thefreedictionary.com/authority 2.http://legal-dictionary.thefreedictionary.com/agency http://legal-dictionary.thefreedictionary.com/agency