When you create your corporation and make it a legal entity in the principal State of Business, Nevada, or Delaware, one of the requirements is to Capitalize your company to give it value.
What this means is to create a number of shares (stock) in the company and give it a “par value” (which may be no par value). You are taxed based on this value until you start making revenue, etc.
Original Article: A Tutorial on Capitalization of a Startup Corporation | Find Investors
