Arizona Clauses Relating to Initial Capital contributions
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How to fill out Clauses Relating To Initial Capital Contributions?
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FAQ
An Initial Capital Stock Contribution is a specific amount of money you noted on your Operating Agreement that you as a shareholder in your LLC with S Corp tax formation would 'contribute' to get the business up and running.
Capital Contribution" means any contribution to the capital of the Company in cash or property by the Sole Member pursuant to Article V. Capital Contribution. The Member may contribute cash or other property to the Company as it shall decide, from time to time.
Cash or assets given to an entity in exchange for an equity interest or as part of an ongoing obligation, or capital commitment, to fund the entity.
Capital contribution: This clause outlines the amount of money that each partner is contributing to the partnership. It should include the initial capital contribution, as well as any additional contributions that may be required in the future.
For example, an owner might take out a loan and use the proceeds to make a capital contribution to the company. Businesses can also receive capital contributions in the form of non-cash assets such as buildings and equipment. These scenarios are all types of capital contributions and increase owners' equity.