November 24, 2008 2:45 PM EST
At the time of incorporation of my company, there were 1,000 authorized shares of which I paid for $100 for 100 shares. There are no other shareholders. Over the last year I have put in $50k of my own money into my company. We are working on a software application and everything put in gets spent on development. We will be looking to raise funds after an year.
Regarding the accounting of the $50,000, my accountant is suggesting I purchase shares worth $25,000 and show the remaining $25,000 as a loan from me to the company. Is there any logic to this? (Basically, why not issue shares for the entire amount to me?)