to open up a new business. this is different from other countries, say China.
practically speaking, there are so many ways to finance a business, whether or not you have a loss or profit has nothing to do with your initial capital contributions. that being said, you do need to have "adequate capital" contribution so that you get the liability protection for your personal asset. however, what is "adequate" is very subjective. it differs from industry to industry, from business to business. as long as you can justify that you do have "adequate" capital contribution, then legally, you are protected from the perspective of liability.
for an LLC, the capital contribution of a member, or members, are usually specified in the Operating Agreement. Again, the Operating Agreement is not filed with the State, so nobody knows it other than the member. but it is recommended to have an Operating Agreement. This way, when you are sued, you can show people that you are doing a "legitimate business," not a sham business.
got it? Any more questions?
practically speaking, there are so many ways to finance a business, whether or not you have a loss or profit has nothing to do with your initial capital contributions. that being said, you do need to have "adequate capital" contribution so that you get the liability protection for your personal asset. however, what is "adequate" is very subjective. it differs from industry to industry, from business to business. as long as you can justify that you do have "adequate" capital contribution, then legally, you are protected from the perspective of liability.
for an LLC, the capital contribution of a member, or members, are usually specified in the Operating Agreement. Again, the Operating Agreement is not filed with the State, so nobody knows it other than the member. but it is recommended to have an Operating Agreement. This way, when you are sued, you can show people that you are doing a "legitimate business," not a sham business.
got it? Any more questions?
