What types of items may a corporation receive in exchange for issuing shares?
Shareholders are issued shares in the corporation in exchange for contributing to the corporation money, property or services, or any combination thereof, which are transferred to and become the property of the corporation. The contributions become the assets that capitalize the corporation. The corporation laws of each state specify the types of items that a corporation may accept in exchange for issuing shares. This always includes cash and most types of property (office equipment, furniture, vehicles, etc.), plus promissory notes, and past services rendered (but generally not future services). The board of directors determines the value of any property contributed to the corporation.
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