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Clauses Relating to Initial Capital contributions

Clauses Relating to Initial Capital contributions

Name: Clauses Relating to Initial Capital contributions
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.58 (211 reviews)

Category:

Partnerships - Drafting Joint Venture Agreements

State:

Multi-State

Control #:

US-P0607-1BAM

Format:

Instant download

Description

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

A capital contribution is an act of giving money or assets to a company or organization. When an investor or partner gives money for your business, this is called a contribution. But this differs from another form of contribution, such as a loan.Depending on the agreement, the capital doesn't have to be paid back.

A contribution agreement (also known as a deed of contribution) for use in a share purchase transaction involving several sellers. It sets out the basis upon which the sellers intend to apportion between them any liability arising under the warranties, indemnities and tax covenant in the share purchase agreement.

Many communities impose a capital contribution (sometimes called an initiation fee) on new owners. This is a one-time, nonrefundable fee paid by the buyer at closing. These fees usually go into a special account used to fund capital improvements and repairs in the community. Both Fla.

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.

Your contribution to the LLC as a member is called your capital contribution, your contribution to the ownership. This capital contribution gives you a share in the LLC, and the right to a percentage of the profits (and losses). If you are the only member, you have 100% of the ownership.

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.

An equity contribution agreement occurs between two parties that are agreeing to pool together cash, capital, and other assets into a company to conduct business. The capital is provided in exchange for a portion of the equity in the company venture.The nature and terms of the agreement between the two parties.

Clauses Relating to Initial Capital contributions

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