UICI Education & Training
New Age Corporations 101 & UICI
New Age Capitalism 101 & UICI
New Age Corporations 101 & UICI
Words & Language - The Key To UICI's Success
Organizing UICI's Corporate Structures In The Black Community
Understanding UICI, The Legacy of Slavery & Jim Crow
The Importance Of UICI's Educational Process
Understanding 26 USC 83(b) & UICI's Founder's Stock
Understanding 26 U.S. Code 248 & UICI's Deductible Preincorporation Expenditures
Section 8 Housing Choice Voucher (HCV) Program FAQ
Understanding Contract Law & Breach of Contract
Forum Information - New Age Capitalism, Corporations & Thinking
Otis C. Harrison's - The Story Of Words
Stopping Corporate Defamation Before It Gets Started
UICI's Untold Connection & History
UICI Invitation Only
UICI Compliance, Operation & Governance
UICI Minutes Past & Present
UICI Resolutions Past & Present
New Age Thinking, New Age Capitalism & New Age Corporations
UICI Owner

New Age

Corporations™ 101 & UICI™


The Opportunity African American Women Have Been Waiting For 
New Age Capitalism & New Age Corporations
Now You Can Lead The Way To The Future

"Many Paying A Little"

A Capitalization Fact Or Myth?

Even though the concept has been glorified, as you will see, other than a concept, many paying a little, cannot capitalize a New Age Corporaton™'s operations in America without the addition and inclusion of a great deal more. Therefore, "many paying a little" is more myth than fact if 1244 Stock is not used during the initial capitalization or funding phase. Otherwise, the first reality that a New Age incorporator must consider and be aware of is the many that are paying a little must be accredited investors.
When the Security Act was passed in 1933, Black people and poor people were not considered, otherwise the law would have been written differently. However, when the law is studied carefully, there are provisions within it that will help any group of people with moderate to low income to use it to fund or capitalize a corporate entity. However, these individuals are limited to $1,000,000.00.
Today, such a corporate entity would be classified as a Small Business Corporation or SBC. In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following: 1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income. 2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse. 3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
These investors are considered to be fully functional without all the restrictions of the SEC. An employee benefit plan or a trust can be qualified as an accredit investors if total assets are in excess of $5 million. As you can plainly see, all these requirements virtually and literally eliminates 99.9% of the Black community. Therefore, as already stated, other than a concept, many paying a little, cannot fund a New Age Corporation's™ operation without considerable help from other sources.
To use a "many a litte concept", alone, without 1244 Stock, automatically eliminates using SEC Rules 505 and 506. Like UII in 1996, any New Age Corporation would be limited to using Rule 504 that restricts funding to $1,000,000.00 and places the added burden of doing it during a 12 month period. Even though Rule 504 does not mention accredited investor, there is no accompanying rule or subsection that separates it from Rule 501. Therefore, in the abundance of caution, it is both wise and prudent to limit any stock offering to accredited investors. Hence, even under Rule 504, a New Age Corporation could not and cannot rely solely on "many paying a little" as a funding strategy in the Black community without IRC Section 1244. {Click here to review Rule 504}

When Is “Many Paying

A Little” Not A Myth But A Capitalization Fact


“Many paying a little” or New Age Capitalism becomes an actual or capitalization fact when equity shares, such as IRC Section 1244 Stock are offered. This constitutes an ownership or equity offering rather than an investment. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.


On the other hand, equity is the ownership interest or claim of a holder of common stock (ordinary shares) such as IRC Section 1244 Stock and some types of preferred stock (preference shares) of a company that have a consistent value, such as $500.00 a share. On a balance sheet, this $500.00 a share is an equity that represents funds contributed by the owners (stockholders) plus any retained earnings or minus any accumulated losses. Therefore, IRC Section 1244 Stock represents genuine ownership of a corporation by its shareholders that have all power and control as a collective group of people.  When this happens “many paying a little is a capitalization fact” and not a myth. {Click here to learn more about IRC Section 1244 Stock - 3/5/2016}


Images from Google's public source - 8/2015
2015 - George M. Sistrunk - All Rights Reserved. 

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