January 17th, 2008
Issues With Capitalizing Your New Corporation
Once you register a corporation in your state, you must go ahead and capitalize it. This raises a host of questions regarding the best way to do it and potential risks of getting it wrong.
First things first. Any discussion of capitalization needs a disclaimer. Every state sets forth its own rules on capitalization and you should look to your state of incorporation regarding them. These rules may cover issues such as minimum cash contributions that must be made, debt to equity ratios and so on.