Massachusetts Clauses Relating to Initial Capital contributions
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How to fill out Clauses Relating To Initial Capital Contributions?
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FAQ
An Initial Capital Stock Contribution is a specific amount of money you noted on your Operating Agreement that you as a shareholder in your LLC with S Corp tax formation would 'contribute' to get the business up and running.
One of the most important sections in the operating agreement is the capital contribution section. A capital contribution section usually addresses what happens if members fail to contribute their portion of the initial start-up capital.
One of the most important sections in the operating agreement is the capital contribution section. A capital contribution section usually addresses what happens if members fail to contribute their portion of the initial start-up capital.
Capital Contribution" means any contribution to the capital of the Company in cash or property by the Sole Member pursuant to Article V. Capital Contribution. The Member may contribute cash or other property to the Company as it shall decide, from time to time.
The most common capital contribution is cash, but you can also contribute property, such as office space, vehicles, and equipment. It's also possible to contribute services to an LLC.
This clause should be used when one member contributed real property to the joint venture in exchange for membership interests and another member has contributed capital. The capitalized terms and section references used in this clause should be conformed to the relevant joint venture operating agreement.
Your Capital Contribution should be equal (proportionate) to your Membership Interest. For example, if Bob and Jose each own 50% of their LLC, they will each contribute the same amount of money. For example, they can both contribute $500, $1,000, or $25,000. The amount doesn't matter, as long as it's the same.