Forums: Discussions for entrepreneurs and small business.

I was taught to study the past, but do not think for a moment I could change it. Take what you got and change the future.

A working owner files for an l.l.c. and proceeds to invest his own cash into building on an invention. He acquires a patent through a lengthy and costly legal quest. He funds a 4 year development of the product and subsequent acceptance by the major retailers in his market.

He retains a patent, a working product, a reliable manufacturer, and shelf space with the market's major online and brick and mortar retail outlets. 

My question is, for personal financial purposes as owner and "employee" of the new company, can the owner state the invested monies to start the company as an asset that he possesses and if so, how is that asset offered?

It's not going to take the planet by storm, but the owner is well set-up to make a reasonable living selling this product at least for the next 20 years. Thanks for any advice you can offer.

franko,

The money (or any other type of asset) that an owner contributes to the company is no longer their asset but belongs to the company entity (LLC)

However, the ownership of the company (LLC units) is a personal asset which carries a value based upon the valuation of the company.

If you want to discuss your specific situation, feel free to drop me a PM or contact me directly.

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