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miche297 · Nov 13, 2010, 03:26 PM

I have a company , I invest $100 and issue 100,000 share to myselft, how to record this in journal entry?

Just Looking · Nov 13, 2010, 03:47 PM

The basic entry is to debit cash and credit common stock. There can be more required depending on the par value or stated value of the stock.

miche297 · Nov 13, 2010, 05:25 PM

the value of the stock is $1/shares, but when I brought , because of the knowledge , So I can pay less than the normal price.

Just Looking · Nov 13, 2010, 07:15 PM

Let me ask you some questions:

What type of corporation is this - C Corp or S Corp?
Will you be the only person buying stock?
Which state are you in?
Did you bring any assets into the business, for example equipment?
Have you paid for anything for the business out of your personal checking account?
Did you properly file with the Secretary of State in your state?
Did you have help setting up this business?

miche297 · Nov 15, 2010, 01:14 PM

There are less than 10 person buy the stock, it's S corp, just for the first invest .

Just Looking · Nov 15, 2010, 03:05 PM

The reason I'm asking the above questions is that you would be wise to have help setting up your business, especially if there are other shareholders. You can end up with tax affects you weren't aware of if you do this on your own. I would suggest you contact a local accountant in your area. State law also makes a difference in how to set up your business in the best way.