[GNC] Bootstrapping and Company Ownership.

[Stephen M. Butler]

On 1/15/19 2:11 PM, jason wrote:
> Good morning,
>
> Currently, I am learning to have a legal entity (I am 19 years old, 21 years
> old is the minimum legal age to have a legal entity). Which allows me to
> have access to Series A Funding and so on.
>
> My goal is to use GnuCash to record Company Ownership.
>
> I am planning to bootstrap this company early (January, 2019) with $100,000.
>
> Thus, the journal entry
>
> 1. Cash DB $100,000
> 2. Paid-in Capital:Jason CR $100,000
>
> *However, I have a question, how do you properly manage the Company
> Ownership?*
>
> By the time I reach 21 years old, I will register my company as legal
> entity. Thus, Series A Funding.
>
> I am willing to let go 20% of Company Ownership to an Invenstor or some
> Investors at $5,000,000 valuation (Cash DB $1,000,000). *How should I record
> this and what account should I make?*
>
> -Jason
Those are questions for your CPA.  Depending on your locality, the rules
may differ (and the CPA might have their own opinion of how they want it
shown when you file).

-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
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