Do I have to pay tax on money received from investors to start my for-profit internet business?

August 1st, 2010 | by admin |

I am about to receive $100,000 from investors to start my for-profit internet business.
Each investor will become a shareholder of the company (receiving a 1% for every $10,000 invested).
The money invested ($100,000) will be used to get the company up and running.
Do I/we have to pay taxes on the $100,000 invested?

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  1. One Response to “Do I have to pay tax on money received from investors to start my for-profit internet business?”

  2. By Ryan M on Aug 1, 2010 | Reply

    No, it is contributed capital, not revenue. I hope this is a homework question and not a legit one. That is very basic business concept and if you do not know that, then your “investors” are doomed.

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