someone gives you money in the amount of more than $10,000 as an investor for your company, what are the laws on paying taxes on that amount of money

Asked on June 1, 2009 under Business Law, Texas


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the money is an investment then you don't have to pay any taxes on it; you would just pay the taxes on any proceeds derived from the investment (ie profit from the business).  If it was a gift (up to $12,000), that would not be a taxable event either.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.