§ 1862 Corporate Shareholder Equity Requirement

• •A company must have enough money from its owners to start.
• •You can't create a company with almost no money from the owners.
• •This rule helps make sure companies are serious and can pay their bills.

You and your friends want to start a lemonade stand as a company.

You can't say you have a company if you only put in $1 total. You need to have enough money from all the owners to really start and run the business.