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Malachai Frazier
7,352 PointsCosts per share
When incorporating (Delaware), do I really have to pay out of pocket for founder shares in the onset? Can't I just charge them to 'sweat equity'?
3 Answers
Pasan Premaratne
Treehouse TeacherHey Malachai,
Simple answer, no. There's tax implications with owning founders stock because it is an asset that has a market value. If price is the consideration, you can set the par value of each share so low that it costs very little for you to own the stock.
Here's a good article to read for more information.
Malachai Frazier
7,352 PointsI understand. Thanks for the info!
Pasan Premaratne
Treehouse TeacherGlad I could help :)