Saturday, September 5, 2009

Getting Rid of Taxes by Imitating the Rich!

The book of the week was another from the Rich Dad Series, Own Your Own Corporation by Garrett Sutton. This book has a simple purpose, to inform the reader the differences between the most popular forms of corporations and how to get them off the ground. If you read my blog about the book Rich Dad, Poor Dad by Robert Kiyosaki, you would understand the benefits of starting your own corporation. I suggest you read it if you haven’t already.

Sutton makes it very clear not to start a sole proprietorship and general partnership. These two entities offer no personal protection. The good types of corporations are C corporations, S corporations, Limited Liability Companies, and Limited Partnerships. Each of the "good types" offer great asset protection, which means, if your company gets sued your personal assets are safe. You will only be risking the assets that are in the corporation’s name.

The book also shows the benefits of starting a corporation in Nevada. In Nevada, you will save money on taxes, maintain privacy, and maximize asset protection strategies. Sutton does a great job of sorting through the details of each portion of the book. From the start-up process to coming up with money, he does a great job of explaining the ins and outs. However, he does make it very clear that this book is not to be a substitution for legal advice and that if you are to go through the process you need to get a lawyer. He even suggests interviewing a few lawyers and picking the one that seems to have you and your company’s best interests in mind. This lawyer is going to be on your “team” and as Robert Kiyosaki says “Business and Investing are team sports.”

I think this book was really good for someone that has intentions of starting up a company. If you don’t have this goal in mind, I wouldn’t worry about picking it up. Read Rich Dad, Poor Dad first, and see if starting your own corporation is really for you. This gives you the jump start you need if you want to live like the "rich" do i.e. not pay taxes and having self sustaining cash machines in your life. I think that having this in your life is the best way to retire truly wealthy.

Sutton’s book is very detailed and it’s a lot of information to take it, which is good if you are going to keep up with all the legalese your lawyer may throw at you. I am a big advocate of having background information on any subject I might need help with. Whether it is law or accounting, you’ll spend a lot less money on your advisers if you go strapped with knowledge. If you have any questions on the book don't hesitate to ask. I would be more than happy to help anyone that wants it.

Amazon Link to buy Own Your Own Corporation

1 comment:

  1. Read this book on a number of occasions Trevor, and it has been very helpful. I still use it as a reference when I have questions about corporate structure and governance. I can't wait till I can have a full-time corporate lawyer to focus on my business only though.