# For the company : Equity = Net amount of funds invested by owners + retained earnings or Equity = Assets - liabilities # For the individual : It is the percentage ownership that a person holds over the comapany . but this is not put on paper . On legal papers , only an integral number of [[Shares]] are denoted . Which in turn would determine the actual equity that a person holds . # Clarification Equity is calculated by the number of shares you hold . They are not two different ways of setting up a corporation