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How to record owners contribution (initial and ongoing) in a document besides the accounting system ? Is there any template available for the same ?

I have read somewhere that owners contribution as equity to the business must be recorded in a separate document (like a contract) for recordkeeping. Can anyone provide any link to templates for this ?
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New Member

How to record owners contribution (initial and ongoing) in a document besides the accounting system ? Is there any template available for the same ?

If this was a partnership, rather than a corporation, you would have a partnership agreement, detailing what each partner contributed to the partnership, which would be partners' capital.  Partnerships can be purchased, so a value has to be determined.

With a simple corporation, assuming one shareholder, with one share, your equity is basically what is left in the bank after all the company's bills are paid.  You might put $50,000 into a company, but at the end of the day, the difference between assets and liabilities is what your share is worth.  If you closed the company, paid all the bills, and sold the assets, whatever was left would go to the shareholder. If there were two shareholders, with the same class of shares, it would be split evenly.  Your share may have a par value.  If so, it will be so noted in your incorporation articles.  Usually the common shares have no par value.  What you are reading is related to much larger corporations with a more complex share structure. There is no need to worry over this item.



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Highlighted
New Member

How to record owners contribution (initial and ongoing) in a document besides the accounting system ? Is there any template available for the same ?

If this was a partnership, rather than a corporation, you would have a partnership agreement, detailing what each partner contributed to the partnership, which would be partners' capital.  Partnerships can be purchased, so a value has to be determined.

With a simple corporation, assuming one shareholder, with one share, your equity is basically what is left in the bank after all the company's bills are paid.  You might put $50,000 into a company, but at the end of the day, the difference between assets and liabilities is what your share is worth.  If you closed the company, paid all the bills, and sold the assets, whatever was left would go to the shareholder. If there were two shareholders, with the same class of shares, it would be split evenly.  Your share may have a par value.  If so, it will be so noted in your incorporation articles.  Usually the common shares have no par value.  What you are reading is related to much larger corporations with a more complex share structure. There is no need to worry over this item.



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