Bexar Texas Clauses Relating to Initial Capital contributions
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Our LLC capital contribution agreement documents the following essential information: Name of each member making a contribution. The valuation of previous membership interests. Each member's previous percentage of LLC ownership. The date contributions are being made. The LLC name. The LLC date and state of formation.
No Member shall have any obligation to make any Capital Contributions to the Company other than as expressly set forth herein.
Business Law Definition In business and partnership law, contribution may refer to a capital contribution, which is an amount of money or assets given to a business or partnership by one of the owners or partners. The capital contribution increases the owner or partner's equity interest in the entity.
Capital Contributions 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.
Initial Contribution means the first contribution (if any) of Receivables and Receivables Assets related thereto, made pursuant to Section 2.01 of the Contribution Agreement.
A capital contribution is a contribution of capital, in the form of money or property, to a business by an owner, partner, or shareholder. The contribution increases the owner's equity interest in the business.
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. For example, a capital contribution is often made in exchange for additional common stock, partnership interests or limited liability company interests of an entity.
An initial capital contribution is commonly seen as being given in exchange for membership in an LLC. However, while not typical, a person could contribute something to a company without being given membership, and a person could also be given membership without making any contribution.
Loans are advances made to a third party with the expectation of repayment. They entitle the lender to interest usually. Capital contributions are more akin to investments. They are transfers made with the hope of earning a profit or gain.