Jack, you totally need to understand that I'm not an accountant when you read this, I'm just as clueless as you are, so .. with that in mind, if its a corporation then it is an owner's equity transaction. In accounting there are Assets = Liabilities + Owner's Equity, and for corporations owner's equity is basically divided up into Stock's Par Value (face value), additional paid in equity from owners, and retained earnings which is money the corporation has made on its own from fees and product sales. So ... then it depends on how you're going to do the transaction as to how you will book it. 1) You could have a board meeting and the corporation could decide to sell shares that equal 30% of the company to the new investors, increasing the corporation's equity and increasing the overall value of the corporation, that's one option. 2) You could simply make a private transaction between you and the new investor wherein you meet in the state where you are incorporated and sell the new investor 30% of your shares - that's between you and that investor, and it doesn't change the capital position of the corporation at all because it essentially has nothing to do with the corporation. Said another way, the corporation doesn't care if 100% of 1000 shares is owned by one person, or if 700 shares are owned by one, and 300 by another, it makes no difference to the company one way or the other - it still has the same assets it started with. Basically you have to decide if you want the 30k$us yourself, or if you want it to end up in the corporation. The corporation is a separate legal entity, it's like a person ... so if the corporation decides (via its board, i.e. YOU) that it will sell more shares and increase its capital position, then that 30k$us belongs to the corporation, not you.
