Starting an LLC: Where to begin?
in Business, Accounting & Taxes ·
I appreciate the input from everyone.
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Starting an LLC: Where to begin?
in Business, Accounting & Taxes ·
So you're telling me there aren't actually any restrictions on how one handles their initial capital?
Starting an LLC: Where to begin?
in Business, Accounting & Taxes ·
Right, I also neglected to ask whether one is permitted to touch the initial capital while the company is actively operating? For instance, when looking to fund specific projects or various other investments.
Starting an LLC: Where to begin?
in Business, Accounting & Taxes ·
I’m in the process of setting up an LLC, and I’ve run into a few gray areas where I could use some guidance from those who have been through this.
1. If my intention is to contribute 50% of the initial capital through physical assets rather than cash, what does the valuation process look like for used equipment?
For instance, I have a laptop, a smartphone, and some office furniture that I’d like to roll into the company’s holdings.
Do I need to draft a formal bill of sale? Who actually determines if these valuations hold water given they aren't brand new, and how on earth do you execute a purchase agreement when the entity doesn't legally exist yet?
2. Once I kick off my first contract, I’ll need to inject some working capital.
Since this is my own money, what is the proper way to move it into the business account? Is it handled via a formal loan agreement, or is there a more standard way to do it?
1. If my intention is to contribute 50% of the initial capital through physical assets rather than cash, what does the valuation process look like for used equipment?
For instance, I have a laptop, a smartphone, and some office furniture that I’d like to roll into the company’s holdings.
Do I need to draft a formal bill of sale? Who actually determines if these valuations hold water given they aren't brand new, and how on earth do you execute a purchase agreement when the entity doesn't legally exist yet?
2. Once I kick off my first contract, I’ll need to inject some working capital.
Since this is my own money, what is the proper way to move it into the business account? Is it handled via a formal loan agreement, or is there a more standard way to do it?