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In this tutorial, Kathryn Taylor explains the concept of capital contributions for new business owners. A capital contribution refers to the amount of cash or other assets that an owner provides to a company at its formation or throughout its existence. This can apply to both LLCs and corporations. The total value of these cash and assets constitutes the owner's capital contribution, which is significant because it impacts the owner's equity. Additionally, this amount can influence what the owner receives if the company is eventually sold or liquidated. Understanding this concept is crucial for accurately answering inquiries from lawyers or accountants regarding capital contributions.
