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Do founders have to pay for their shares?

Incorporation & entity structure

Yes. Shares have to be issued for consideration, though at formation the price per share is usually nominal, so the total is small.

Keep evidence of the payment. Shares recorded as issued but never paid for create a problem in diligence and can undermine the 83(b) position.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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