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Funding a corporation

rootsroots subscriber Posts: 1
I'm going to be forming a corporation over the next couple months, but I'm not well versed in accounting or business law.  Here's my situation:
I plan on funding my corporation with say, $10,000 up front.  I will deposit the money into my business bank account, and issue 100% of the shares to myself.  My question is, what happens when I want to contribute more capital to the company now that there are no remaining shares?  Do I simply deposit the money into my business account, making the value of the company go up?  Or are there other tax/stock implications I must worry about.
I'm not even close to finishing my research, so if anyone could recommend some SOLID reading (preferably a book) on this matter it would be greatly appreciated.


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  • saravanansaravanan subscriber Posts: 389 Silver Level Member
    When you form a corporation, the founders generally make an initial contribution of capital in exchange for an initial allocation of shares.  This is called paid-in capital and is not considered income for the corporation.  It is not a loan; it is, rather, a fully-at-risk investment.  You simply write a check to the corporation. This check is usually used to open the corporation's first bank account and pay the incorporation fees and costs.
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