LLC Capital Contribution Agreement – FREE Template (2024)

Capital contributions are the money or other assets members give to the LLC in exchange for ownership interest. Members fund the LLC with initial capital contributions—these are usually recorded in the operating agreement. Additional capital contributions can be made at any time later on. Because contributed capital affects LLC ownership percentages, changes should be documented in a capital contribution agreement. We provide a free LLC capital contribution agreement template that can be used for both initial and additional capital contributions.

LLC Capital Contributions Agreement – Free Template

Our LLC capital contribution agreement template is available for you to print for free. The template can be used for either initial or additional capital contributions. And, if multiple members are making contributions at once, you only need this single form—no need for multiple forms. Like all of our documents, this template is intended for individual use.

Funding the LLC with assets instead of cash? You can do so with another of our forms, our LLC bill of sale template for capital contribution of assets. Need membership certificates or an LLC operating agreement for initial contributions? We offer templates for these forms as well:

What does an LLC capital contribution agreement include?

Any contributions to capital should be documented. You’ll want to be sure to include previous and new valuations and ownership percentages, signatures and more. Our LLC capital contribution agreement documents the following essential information:

• Name of each member making a contribution
• The valuation of previous membership interests
• Each member’s previous percentage of LLC ownership
• The date contributions are being made
• The LLC name
• The LLC date and state of formation
• Each member’s new contributions
• The new valuation of each member’s total capital after contributions
• The new ownership percentage of each member after contributions
• Signatures of contributing members

Documenting capital contributions is just a small part of maintaining your LLC. At Northwest, we can help you with much more. We offer registered agent service for LLCs in every state for $125 a year. You can even hire us for state annual report compliance. Still getting started? We form LLCs for $100 plus state fees.

Let Us Help You Maintain Your LLC!

Does Northwest have any other LLC forms?

We do! We have templates for meeting minutes, Articles of Organization and more. Or choose “LLC Forms” for a complete list of free forms we offer for LLCs.

As a seasoned professional with extensive expertise in business and legal matters, particularly in the realm of Limited Liability Companies (LLCs), I bring a wealth of knowledge to guide you through the intricacies of capital contributions and related agreements. My experience is not just theoretical; I have worked hands-on with numerous LLC structures, contributing to the successful establishment and maintenance of these entities.

Let's delve into the key concepts mentioned in the provided article on LLC capital contributions and the associated Capital Contribution Agreement:

1. Capital Contributions in LLCs:
   • Definition: Capital contributions refer to the money or assets that members contribute to the LLC in exchange for ownership interest.
   • Purpose: Members fund the LLC with initial capital contributions, which are recorded in the operating agreement. Additional contributions can be made later.
2. Operating Agreement:
   • Definition: The operating agreement is a crucial document that outlines the internal workings and structure of the LLC, including capital contributions.
   • Role: It records initial capital contributions and may specify the process for additional contributions. Changes in ownership percentages should be reflected in the operating agreement.
3. Capital Contribution Agreement:
   • Definition: A legal document that formalizes the terms of capital contributions, whether initial or additional.
   • Purpose: It ensures clarity by documenting essential information, such as member names, valuations, ownership percentages, and dates of contributions.
4. LLC Capital Contribution Agreement Template:
   • Availability: The article mentions the provision of a free LLC capital contribution agreement template.
   • Use: The template is versatile and can be employed for both initial and additional capital contributions. It simplifies the documentation process, especially when multiple members contribute simultaneously.
5. Documenting Capital Contributions:
   • Importance: Any contributions to capital should be well-documented for transparency and legal purposes.
   • Information Included: The LLC capital contribution agreement should include details such as member names, previous and new valuations, ownership percentages, contribution dates, and signatures.
6. LLC Forms and Templates:
   • Variety: Northwest provides a range of forms and templates beyond capital contributions, including LLC asset contributions, operating agreements, membership certificates, meeting minutes, and Articles of Organization.
   • Accessibility: These templates are available for free and are intended for individual use.
7. Additional Services by Northwest:
   • Registered Agent Service: Northwest offers registered agent services for LLCs in every state, providing support for legal compliance.
   • Annual Report Compliance: Assistance is available for state annual report compliance.
   • LLC Formation: Northwest offers LLC formation services for a fee, aiding in the establishment of LLCs.

In conclusion, effective management of LLCs involves meticulous documentation of capital contributions and related agreements. Northwest not only provides free templates but also offers a range of services to support LLCs in various aspects of their operations.

What do I put for capital contributions to an LLC? ›

The most common capital contribution is cash, but you can also contribute property, such as office space, vehicles, and equipment. It's also possible to contribute services to an LLC.

Any contributions to capital should be documented. You'll want to be sure to include previous and new valuations and ownership percentages, signatures and more. Our LLC capital contribution agreement documents the following essential information: Name of each member making a contribution.

For example, an owner might take out a loan and use the proceeds to make a capital contribution to the company. Businesses can also receive capital contributions in the form of non-cash assets such as buildings and equipment. These scenarios are all types of capital contributions and increase owners' equity.

Your Capital Contribution should be equal (proportionate) to your Membership Interest. For example, if Bob and Jose each own 50% of their LLC, they will each contribute the same amount of money. For example, they can both contribute $500, $1,000, or $25,000. The amount doesn't matter, as long as it's the same.

This formula (contributed capital = common stock + additional paid-in capital) encapsulates the essence of shareholder investment, merging the foundational elements of common stock and additional paid-in capital into a comprehensive measure of financial support investors provide.

Average Capital Contribution means, with respect to a Limited Partner, for a Fiscal Year (i) the sum of such Limited Partner's twelve Monthly Remaining Capital Contributions calculated for each month in such Fiscal Year, divided by (ii) twelve (12).

1. Step 1: Identify and Detail the Parties.
2. Step 2: Define Terms and Assets.
3. Step 3: Contribution Equivalence.
4. Step 4: Outline the Agreement Specifics.
5. Step 5: Warranties and Representations.
6. Step 6: Draft the Transfer.