I incorporated a business about 2 months ago with the help of my friend who is a CPA (he did it free of cost for me). My friend is no longer available, and I am having trouble figuring out how to code my stock contributions / initial investments on my balance sheet.
I looked on my 'Articles of Incorporation' and it says that I have 2000 shares of stock at a par-value of $.01. I looked at my IRS documents that he filed, and it says I own 100 of the 2000 shares. I invested a total of $1,000 into the business.
So, I setup an Equity account with $1.00 in it an called it "Common Stock", but I am unsure as to what to do with the other $999.
Questions..
1. Did I code the common stock properly?
2. What do I do with the other $999? Can I make it as a 12-month loan? If so, do I need a promissory note from myself to the company? Do I need to charge interest? What rate do I use? Do I need a witness?
3. Do I need to fill out the minutes, stock cards, and operating agreement if I am the only shareholder?
Thanks for your help,
- Eric





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