Colorado Clauses Relating to Initial Capital contributions

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US-P0607-1BAM
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This sample form, containing Clauses Relating to Initial Capital contributions document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.
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FAQ

As a Colorado single-member LLC, you are not technically required to have an operating agreement. Nevertheless, you want to make sure that you have one between yourself and the company. Remember, the LLC is a separate legal entity.

One of the most important sections in the operating agreement is the capital contribution section. A capital contribution section usually addresses what happens if members fail to contribute their portion of the initial start-up capital.

Simply writing out a check for the amount you're supposed to contribute will do the trick. You should document it in the accounts as a contribution of added capital, and show how this increases your membership share of the LLC.

Capital contributions are the money or other assets members give to the LLC in exchange for ownership interest. Members fund the LLC with initial capital contributions?these are usually recorded in the operating agreement. Additional capital contributions can be made at any time later on.

Capital Contribution Agreement for LLCs. Capital contributions are the money or other assets members give to the LLC in exchange for ownership interest. Members fund the LLC with initial capital contributions?these are usually recorded in the operating agreement.

A capital contribution agreement is a contract between two or more parties that outlines the conditions of an investment made by one party into another. This legal document outlines how the funds will be used and who will benefit from it and what happens if any obligations are not met.

A contribution agreement is a legally binding document that allows individuals or firms to share the burden of a liability. The agreement provides assurance that if they are sued, they would be able to seek a pre-determined proportion of the liability from fellow members of the agreement.

Example of Contributed Capital For example, a company issues 5,000 $1 par value shares to investors. The investors pay $10 a share, so the company raises $50,000 in equity capital. As a result, the company records $5,000 to the common stock account and $45,000 to the paid-in capital in excess of par.

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Colorado Clauses Relating to Initial Capital contributions