My current location: Los Angeles, CA | Change location
Featured Legal Services
Wang, Hartmann, Gibbs & Cauley, P.L.C. Providing Exceptional Representation for Businesses. Call Today to Speak with Our Attorneys. 1-888-WHGCLaw (944-2529)
1-888-WHGCLaw

What to Expect: Amount and Timing of Investments


Sole Proprietorship. A sole proprietorship can be started with any amount of investment. The sole proprietor may withdraw funds from the business or put more funds into the business at any time without having to worry about tax consequences or government regulations.

General Partnership. The amount required to invest in a general partnership will be determined by an agreement with the other partners. Investment can be in the form of cash, equipment, mailing lists, or labor and services. The value of the contributed labor and service is usually taxable income to the partner.

Limited Partnership. The amount required to invest in a limited partnership will be determined by an agreement with the other partners. Investment can be in the form of cash, equipment, mailing lists, or labor and services. The value of the contributed labor and service is usually taxable income to the partner. It is important to remember that a limited partner must be careful not to contribute services that involve "managing" the business or the limited partner runs the risk of losing protection from personal liability for the limited partnership's debts and obligations.

Corporation. The amount of total investment is determined by how many shares of stock the corporation is authorized to issue. The corporation can always seek to issue additional shares when the need to raise capital arises. The investment can be in the form of cash, equipment, securities, or even a promise to invest (a stock subscription). Stock subscriptions are often used at the initial stage of forming a corporation.

Limited Liability Company. The amount to be invested will be determined by an agreement with the other members. Investment can be in the form of cash, equipment, mailing lists, or labor and services. The value of the contributed labor and service is usually taxable income to the member.


Featured Legal Services
Oswald & Yap, L.L.P.
Oswald & Yap, L.L.P. Serving Los Angeles and Orange Counties www.oswaldyaplaw.com
Experienced & Effective Representation: Business Law, Securities, Commercial Real Estate, Intellectual Property.
(888) 312-8923
Law Offices of Peter C. Bronstein Business and Corporate Law. Reasonable Rates. The Next Best Thing to Having Your Own Corporate Counsel. Call Now,
(310) 203-2249
Mark A. Brifman BUSINESS ATTORNEY WITH CORPORATE AND SMALL BUSINESS EXPERIENCE. PRACTICAL
(818) 920-2113
Sponsored Services
Incorporate online today with FileOnline.BIZ.
Offering an easy online incorporation for your new corporation or LLC starting at $49 plus state fees.
More Sponsored Services
Incorporate Online - Incorp.com
LLCs, Corporations, Corporate Dissolutions, Aged Shelf Corporations. We will beat any competitor's price on Registered Agent or Incorporation services!
Incorporate Online - Legalzoom:
Form a corporation or LLC quickly and easily. From LegalZoom, the #1 legal document service.