Hello. I am thinking of incorporating a llc in Delaware, however during my research I found out it is best to have an initial contribution in the business. My question is, in the operating agreement during the formation of the LLC, should I list down a cash amount of my initial investment, or can I leave it at $0.00 but once the business has been formed and a business bank account open I can do the initial contribution then? e.g. transferring $1k from my personal account to my business account.
2 Answers from Attorneys
The very first thing you will typically do as soon as the entity is formed is open the business bank account. So it matters not if you input the contribution upfront then a week later open the account.
If you need clarification, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Our firm is now referred by the American Bar Association (see under the New York section): http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
The operating agreement is an internal company document and the LLC can choose when and how often to update it according to circumstances. Some LLCs choose to update the operating agreement as soon as contributions are made, others choose to update it once a year, and yet others have the operating agreement point to a separate ledger that keeps track of such contributions.
BTW, if you are not based in Delaware forming a Delaware LLC may not be the best choice. You should consult with a startup attorney or you can reach out directly to me. Our cost of LLC formation is very similar to the cost of national incorporation services and you get an attorney doing it!
Roman R. Fichman, Esq.
email: Info @ TheLegalist .com
Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.
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