Have Tax Questions? Ask a Tax Expert for Answers ASAP
Yes you are correct, negative capital accounts. by original capitalization you mean what? there are 5 owners 1 put in money the rest did not. Their negative capital has come from prior losses to the LLC
How do you account for the actuall stock issuance though. say they got 1000 shares of $.1 par value. you would need stock of 100 and what would the other side be?
Also the books don't make sense, can't a corp not have negative capital
Hi and welcome to Just Answer!
According to your last statement - the answer came too late.Please verify if you still need the answer.If not - you may simply close the question.