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hi there are you a new business owner who has been asked by your lawyer or by your accountant what the amount of your capital contribution is im kathryn taylor the lawyer for business owners and im going to explain for you what that is so that you can answer that question so what is a capital contribution to a business in a nutshell its the amount of cash or other assets that an owner will contribute that is transferred to the company at the inception of the company when the company is formed or throughout the life of the company so at the beginning when your company is starting up there will usually be some cash or some assets that the owners transfer to the company and this is whether its an llc or a corporation the value of the cash plus assets is the owners capital contribution and thats important because that capital contribution amount can affect the owners equity and it can also affect the amount that the owner would get out of the company should the company be sold or li
