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Young Entrepreneur Forums » General Business » Legal » Properly self-funding your corporation



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Old 08-06-2008, 03:30 PM   #1 (permalink)
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Properly self-funding your corporation

Once you have set up a corporation and would like to contribute more money (of your own), do you have to issue new shares to yourself in exchange, or can you just deposit the money into your company's bank account? If both, is there any reason to do one or the other (current or future taxes, etc.?) If I can just deposit it, do I need to account for it any way (e.g. does the money go to additional paid in capital?).

Thanks in advance for the help
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Old 08-06-2008, 04:52 PM   #2 (permalink)
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well i believe if you have a corporation you set up how many shares you own. Putting more money into the company just boosts the value of each share i think. So you wouldnt issue any shares.
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