Capital Agreement Legal Guide

Summary

A capital contribution agreement for a personal loan to a new LLC in Virginia should include key elements such as the title, parties involved, effective date, recitals, capital contribution amount, repayment terms, ownership interest, representations and warranties, default conditions, governing law, and signatures. For a single-member LLC, the ownership interest should be 100%. It is advisable to consult a lawyer to ensure the document is legally binding and tailored to specific needs.

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Write it like an entire contract with all the needed detials
Sure, I can provide a detailed outline, but remember, it's best to have a lawyer review and finalize any legal agreement. Here's a comprehensive template:
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Capital Contribution Agreement
This Capital Contribution Agreement ("Agreement") is made and entered into as of [Effective Date], by and between [Loaner Name], an individual ("Loaner"), and [LLC Name], a limited liability company organized under the laws of the State of Virginia ("LLC").
Recitals
- WHEREAS, the Loaner agrees to provide a loan to the LLC for capital contribution purposes.
- WHEREAS, the LLC agrees to accept the loan under the terms and conditions specified in this Agreement.
Agreement
*. Capital Contribution
- The Loaner agrees to contribute the sum of $[Amount of Loan] to the LLC.
- The contribution will be made on or before [Date].
*. Repayment Terms
- The loan will carry an interest rate of [Interest Rate]% per annum.
- The LLC agrees to repay the loan in [Number] installments of $[Amount] each, beginning on [Start Date] and continuing every [Period] thereafter until the loan is repaid in full.
*.Ownership Interest
- In consideration of the capital contribution, the Loaner shall receive an ownership interest in the LLC equivalent to [Percentage]% of the LLC's equity.
*. Representations and Warranties
- The Loaner represents and warrants that they have the legal capacity and authority to enter into this Agreement.
- The LLC represents and warrants that it has the authority to accept the loan and issue the ownership interest.
*. Default
- Conditions of Default: The LLC will be in default if it fails to make any payment as agreed or breaches any term of this Agreement.
- Remedies: Upon default, the Loaner may declare the entire unpaid balance, including accrued interest, immediately due and payable and may pursue any legal remedies available.
*. Governing Law
- This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia.
*. Signatures
- This Agreement is executed as of the date first above written.
Loaner: [Loaner Name]
_____________________________
LLC: [LLC Name]
By: __________________________
Title: _______________________

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What is an ownership interest
An ownership interest represents a stake or share in a company or property. It gives the owner certain rights, such as voting, profit sharing, or decision-making authority, depending on the type of ownership.
Do you need information on how to transfer ownership interest in Virginia?
for a single member llc in virginia shoudl the interest of the owner/mambging memeber say *%
For a single-member LLC in Virginia, the ownership interest of the owner/managing member should indeed be *%. This reflects the sole ownership and control over the LLC.
Do you need any specific information on forming or managing a single-member LLC in Virginia?