I am starting a new business with a partner who is putting up the cash to start the business and in turn I am quitting the job I have been at for 19 years and going to be running the business. We are gong to be 50/50 owners but I am bringing the expertise to the table and he is bringing the cash. We are setting up as a Corporation but what are the tax implications? if he puts up 100K and I put up 0 but I am bringing the expertise and experience to the table how does that work? Does that mean he is gifting me 50K or does this just mean his basis in the business is 100k and mine will be 0?