A friend and I formed an Oregon LLC in 2008 for an online business. Now we're up and running and both working on it full-time. Now we've both moved to Texas and want to re-form as a Texas company instead of remaining an Oregon LLC and paying foreign entity fees.
We originally valued the company at $100 and as each put in $50 back when we had nothing but an idea. Today we have a working product and users and the valuation of the company, however we determine it, will surely be higher than $100. I also think it might be a good idea, upon re-forming in Texas, to add in reverse vesting, since we want to look for investors.
How is this going to work? If we valued the company at, say $100,000 today upon re-forming in Texas, would we really have to pay $50,000 each or grant it to ourselves free and count it as income tax? Even if we're the founders?