What is Paid-in Capital
What is Paid-in Capital?

BUSINESS SERVICES


Secure Online Business Services for all States
All Business Documents, Inc., Business Services - General, San Francisco, CA

What is Paid-in Capital?

Corporations may sell shares of stock in order to raise capital. Most states require new Corporations to specify the number of Authorized Shares of Stock which the Corporation may issue in their Articles of Incorporation.

Corporations may sell some of their stock directly to purchasers. Stock then may be sold from one purchaser to another through brokers on the open market. Corporations may also issue stock to employees as a form of compensation.

Most Corporations issue stock with a Par Value. Par value is usually a small amount, in many cases less than a dollar. When the Corporation sells stock directly to purchasers, those purchasers usually pay an amount greater than the Par Value.

Paid-in Capital could have two definitions depending on the source. Paid-in Capital may refer to the difference between the price at which a share of Corporate Stock was sold minus the Par Value of the stock. Sometimes references to Paid-in Capital include Par Value plus any amount above Par value.

Paid-in Capital does not include retained earnings but only the amount that was received by the company in exchange for ownership shares in the company.
CORPORATE GLOSSARY
 
Administrative Dissolution
Agent for Service of Process
Apostille
Apportionment
Articles of Incorporation
Articles of Organization
Assumed Name
At Will LLC
Authorized Shares
B Corporation
Benefit Corporation
Board of Directors
Business Dissolution
Business Entity
Bylaws
Certificate of Existence
Certificate of Status
Certified Copy
Close Corporation
Common Stock
Conversion
Corporate Bylaws
Corporate Name Reservation
Corporate Stock
DBA
Disregarded Entity
Dividends
ESOP
Excise Tax
Federal Tax ID
Ficticious Name
Foreign Qualification
Franchise Tax
General Partnership
Good Standing Certificate
Incorporator
Involuntary Dissolution
IRS Form 966
ITIN
Limited Liability Company
Limited Partnership
Liquidation
LLC
LP
Majority Shareholder
Meetings
Merger
Nexus
Non-Stock Corporation
Nonprofit Corporation
Obligated Member LLC
Organizer
Paid-in Capital
Paid-in Surplus
Par Value
Personal Service Corporation
Preferred Stock
Privilege Tax
Professional Corporation
Professional Service
Proxy
Registered Agent
Registered Office
Reporting Requirements
Revocation
S Corporation
Series LLC
Service Mark
Shareholder
Sole Proprietor
Stated Capital
Statutory Agent
Stock Certificate
Term LLC
Trade Name
Trademark
Trust
Trustee
Winding Up
All Business Documents, Inc. is not a lawyer or an accountant and provides only document filing and retrieval services under your supervision.
All content and design copyright © 2003- All Business Documents, Inc. All Rights Reserved.
Privacy Policy Site Map Contact us