Capital Contributions

Capital Contributions are provided by the shareholder (corporation) or member (LLC) – you – and are typically the minimum required to open the company bank account.

Since your capital contribution is not repaid until after your shut down the company, many people merely fund the business with the minimum required to open an account and then claim the start up costs as business expenses or as a loan to the company depending upon the recommendation of their accountant.

Speak to your accountant about the minimum required since the capital contribution is not treated as a loan and is not repaid until you sell or close the company.