"The S-Corp has 3 shareholders."

You're going to need to weigh these options, and understand that if you do it one way, the individuals might have taxable gain and they might not appreciate this scenario. It also depends on the asset type, because we don't want to have a fight over who gave more valuable items to the business startup. And you always want to look for favorable treatment for the individuals and for the S Corp. That is why, for my example of selling an asset to the corporation, one shareholder might own the Well Drilling rig that is being sold into the S Corp, while someone else owns the Grader.

Just as examples.