Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. The term "entire capital stock," as used in Section 9366, General.Section 5733.04 - Corporation franchise tax definitions. For that fee, a corporation is entitled to authorize up to 990 shares of stock. In the cases of an unincorporated institution such terms shall mean the capital and surplus thereof. Any gain on the sale of other capital assets of the farm. The pass-through taxation of an LLC means that business income is not taxed at the entity level.